If you are a shipper or railroad considering financing rail assets, the fourth quarter of 2016 might be the right time to execute.
For tax purposes, the IRS Code Section 179 includes accelerated write-offs for capital expenses. That's because businesses purchasing $2 million or less in capital equipment during 2016 can deduct up to $500,000 of that expense immediately on their 2016 tax return.
You can also enjoy tax advantages for equipment acquisitions exceeding $2 million. To do so, you’ll need to manage the tax ownership of those assets in order to maintain your Section 179 write-off. By using a lease from Key Equipment Finance to finance assets over $2 million, Key Equipment Finance becomes the tax owner of the equipment, which allows you to maintain your Section 179 deduction on assets below that threshold.
When it comes to delivering results, Key has a dedicated team of rail specialists ready to roll. Shippers, railroads and lessors alike depend on Key's industry breadth and depth. Here’s what they can expect form partnering with Key:
- Customized solutions – For even the most complex requirements, Key can tailor structures to meet your needs.
- Resident specialists – Key's in-house staff includes legal counsel, underwriters, accountants and asset management experts.
In this brief, learn why Q4 is a great time to acquire rail assets.