Jet-Precoolers™ Tax Benefits
Jet-Precoolers™ can be a Tax Shelter
With Section 179, you likely can deduct the entire cost of a Jet in 2017! See “Understanding The Section 179 Deduction Or use the “Section 179 Calculator”
Absolutely, might be the best tax shelter the produce industry has ever seen. With 3-year depreciation as personal- and not real-, property, the tax savings in the first three years of ownership can be as high as 39.6% or 40%. And that’s just the start.
If I were a tax advisor, which I am not, and if I offered tax shelter advice – which I don’t, here is what I would write about several ways of structuring your Jet Precooler ownership. Consult with your own tax advisor for sane and safe advice!
Scenario 1: The owner of a closely-held company buys the Jets, and then leases them to the company; the owner writes off the depreciation, the company writes off the entire lease payment. The Electrical Utility companies also can contribute, with rebates because of the energy-efficiency of the Jet design. Call me, of have your tax advisor call me, Jim Still 610-248-9800 office and cell.
Scenario 1 Worksheet:
| $16,900 | Purchase price of Jet Precooler |
| $2,450 | Price for VFD |
| $650 | Freight |
| $20,000 | Total |
| ***** | Cost of Money and Tax Rates |
| 6.00% | Interest rate on bank loan |
| 5 | Term in years |
| 39.6% | Marginal tax rate owner |
| 40.0% | Marginal tax rate company |
| ***** | |
| $387 | Monthly P & I |
| ***** | |
| $387 | Owner leases to company at net/net |
| ***** | Summary of Financial Flows & Deductions |
| -$1,267 | Owner Interest deduction for 5 years |
| $3,220 | Owner Interest payments on loan |
| $0 | Owner gross profit, payment in versus P&I out |
| $23,199 | Total of all monthly payments by company |
| -$9,280 | Tax savings Company operating expense deduction for 5 years |
| -$7,920 | 5-year depreciation tax savings |
| ***** | |
| $4,733 | NET “If Financed” and leased back to company |
| -$1,715 | VFD Rebate at 70% max cap |
| ***** | |
| $3,018 | Possible with rebate also on VFD |
| -$14,000 | Rebate if on entire Jet Precooler |
|
*****
|
|
| -$9,267 | Possible “cost” (they pay you) with rebate also on entire Jet Precooler
BETTER THAN FREE!! |
Scenario 2: Imagine if you put the Jets inside your IRA, or 401-k, or other Qualified Plan, and the company paid that entity, oh say, fair market lease of $1,200 per month per Jet into your plan. Call me to discuss, of have your tax advisor call. Jim Still, office and cell 610-248-9800.
Telephone: 1-610-248-9800
Email: Jim.Still@Gcooling.com