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


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