Tax Benefits of Financing

Whether you're a doctor considering new clinical equipment, or a small business owner looking to update your office furniture, computers and software, now is a great time to finance new equipment and maximize your tax deductions. Section 179 of the tax code lets a qualifying business deduct up to $500,000 on its taxes for qualifying equipment purchases.

How Section 179 Could Work for You

Let's say you're expanding your operations and have negotiated a great price on new equipment and office furniture. The total cost is $25,000. Under the Section 179 rules, you may be able to deduct the full equipment cost, even if it's 100% financed! If you're in the 35% tax bracket, your tax savings could be $8,750. The amount you save in taxes could exceed the amount of loan payments made the entire first year.

Equipment Cost: $25,000
Section 179 Deduction: $25,000
Tax Savings (35% tax bracket): $8,750

Revenue-Generating Opportunity

Section 179 is structured to help you grow and improve your business. The tax savings and the added revenue you can generate from your new equipment make it possible to offset loan payments. Then, thanks to Professional Solutions' Absolute & True No Prepayment Penalties, if you decide to pay off your equipment loan early, you can do so without penalty.

Longevity of Tax Benefits

Because Congress rules on budgets and taxes at different times, there is no telling how long current business deductions will remain in effect or if they will be modified. Now may be one of the best times ever to expand or grow your practice and take advantage of possible tax savings.

Request financing now and take advantage of the potential tax benefits available to you.


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Because individual circumstances vary and Professional Solutions Financial Services does not provide legal or tax advice, we always recommend you consult with your CPA or a trusted tax consultant for information relating to Section 179 eligibility and deductibility on all your equipment purchases.

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