Wells Fargo Equipment Finance Take advantage of the increased Section 179 expense allowance © 2016 Wells Fargo Bank, N.A. All rights reserved. All transactions are subject to credit approval. Some restrictions may apply. Wells Fargo Equipment Finance is the trade name for certain equipment leasing and finance businesses of Wells Fargo Bank, N.A. and its subsidiaries. The information contained herein is general in nature and not intended to provide you with specific advice or recommendations. Contact your attorney, accountant, tax or other professional advisor with regard to your individual situation. WCS-1172837 (01/16) Now may be the time for your company to purchase new equipment and take advantage of the Section 179 expense deduction and bonus depreciation benefits available under the Protecting Americans from Tax Hikes Act of 2015. Section 179 The Section 179 deduction limit for 2016 is $500,000. This means your company can deduct the full cost of qualifying new or used equipment from your 2016 taxes, up to $500,000. Phase-out of the deduction starts at $2 million for total equipment purchases and is on a dollar-for-dollar basis. To take advantage of these Section 179 limits for 2016, the equipment must be purchased and put into service by December 31, 2016. Bonus Depreciation Bonus depreciation is extended through 2019. Businesses of all sizes will be able to depreciate 50% of the cost of new equipment acquired and put in service during 2015, 2016, and 2017. Then bonus depreciation will phase down to 40% in 2018 and 30% in 2019. Many types of equipment may qualify: • Material handling equipment • Compact construction equipment • Light industrial equipment • Plant maintenance equipment • Surveying equipment • Production equipment • Medical equipment & technology What does this mean for your customers? • More economical to upgrade equipment • Lower tax liability for the year conserves working capital for other immediate business needs • Many leasing or financing options can be utilized while taking advantage of the tax incentives 2016 Section 179 and bonus depreciation example calculation Total 2016 equipment investment $750,000 Section 179 deduction limit $500,000 20% MACRS depreciation (assuming a 5-year life and $250,000 remaining basis) $50,000 Additional 50% bonus depreciation $100,000 Total 2016 tax deduction: $500,000 + $50,000 + $100,000 $650,000 Potential tax savings in first year (assuming a 35% tax rate) $227,500 Call us today to help your customers invest in their business by offering them the right financing options. wellsfargoleasing.com 1-866-522-7248

Take advantage of the increased Section 179 expense …...Section 179 deduction limit $500,000 20% MACRS depreciation (assuming a 5-year life and $250,000 remaining basis) $50,000

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Page 1: Take advantage of the increased Section 179 expense …...Section 179 deduction limit $500,000 20% MACRS depreciation (assuming a 5-year life and $250,000 remaining basis) $50,000

Wells Fargo Equipment Finance

Take advantage of the increased Section 179 expense allowance

© 2016 Wells Fargo Bank, N.A. All rights reserved. All transactions are subject to credit approval. Some restrictions may apply. Wells Fargo Equipment Finance is the trade name for certain equipment leasing and finance businesses of Wells Fargo Bank, N.A. and its subsidiaries. The information contained herein is general in nature and not intended to provide you with specific advice or recommendations. Contact your attorney, accountant, tax or other professional advisor with regard to your individual situation. WCS-1172837 (01/16)

Now may be the time for your company to purchase new equipment and take advantage of the Section 179 expense deduction and bonus depreciation benefits available under the Protecting Americans from Tax Hikes Act of 2015.

Section 179

The Section 179 deduction limit for 2016 is $500,000. This means your company can deduct the full cost of qualifying new or used equipment from your 2016 taxes, up to $500,000. Phase-out of the deduction starts at $2 million for total equipment purchases and is on a dollar-for-dollar basis. To take advantage of these Section 179 limits for 2016, the equipment must be purchased and put into service by December 31, 2016.

Bonus Depreciation

Bonus depreciation is extended through 2019. Businesses of all sizes will be able to depreciate 50% of the cost of new equipment acquired and put in service during 2015, 2016, and 2017. Then bonus depreciation will phase down to 40% in 2018 and 30% in 2019.

Many types of equipment may qualify:

• Material handling equipment• Compact construction equipment• Light industrial equipment• Plant maintenance equipment

• Surveying equipment• Production equipment• Medical equipment & technology

What does this mean for your customers?

• More economical to upgrade equipment• Lower tax liability for the year conserves working capital

for other immediate business needs• Many leasing or financing options can be utilized while

taking advantage of the tax incentives

2016 Section 179 and bonus depreciation example calculation

Total 2016 equipment investment $750,000Section 179 deduction limit $500,00020% MACRS depreciation (assuming a 5-year life and $250,000 remaining basis)

$50,000

Additional 50% bonus depreciation $100,000Total 2016 tax deduction: $500,000 + $50,000 + $100,000 $650,000Potential tax savings in first year (assuming a 35% tax rate) $227,500

Call us today to help your customers invest in their business by offering them the right financing options.

wellsfargoleasing.com1-866-522-7248