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       Advantage of the Benefits of Section 179

                                The IRS made significant changes to the Section 179 tax deduction in
                                2012. The deduction limit and bonus depreciation have decreased;
                                however, there are still great tax savings available for your business.
                                This Blue Ray Financial whitepaper will help you understand the new
                                Section 179 changes, and the steps you can take to maximize your tax
                                benefits in 2012.

By leveraging the Section 179   Section 179 of IRS Code allows businesses to deduct, rather than
tax breaks, you also free up    depreciate, the costs of assets acquired for business use as expenses in
cash to invest back into your   the year the equipment is purchased. In other words, instead of
growing business.
                                deducting the cost of a piece of equipment over a number of years, your
                                business can write off the entire purchase price in the year it is acquired
                                and put into service.

                                The Section 179 tax deduction in 2012 allows companies to deduct up
                                to $125,000 worth of equipment purchased for business use, down
                                from $500,000 in 2011. Also available is a bonus depreciation that
                                allows businesses to take a deduction for equipment purchases beyond
                                the amount allowed under Section 179. This bonus depreciation is set at
                                50%, with a maximum combined deduction of $500,000.

                                Although there have been significant changes to the Section 179
                                deduction, it is important that you fully leverage the tax savings
                                available to your business this year.

                                If you purchase equipment for your business and put it into service
                                before December 31, 2012, you can take advantage of the new Section
                                179 deduction limits.

                                Slow or outdated equipment and technology can affect the way your
                                business runs. It’s important that your company acquires the equipment
                                it needs to remain competitive in today’s dynamic and competitive
                                business environment. From now through December 31, 2012, you can

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Blue Ray Financial                                                                
       Advantage of the Benefits of Section 179

                                 put new equipment to work for your business and receive significant
                                 Section 179 tax benefits.

                                 By leveraging the Section 179 tax breaks, you also free up cash to invest
                                 back into your growing business. The savings you accrue can be used to

                                 pay employee salaries, increase marketing efforts, or fund expansion

                                 Below is an example of how much a business can save on equipment
                                 acquisitions thanks to the Section 179 tax deduction in 2012:

 For over two decades             Equipment Purchase in 2012                         $200,000.00
 America’s small and medium
 sized businesses have trusted
                                  Section 179 Deduction:                              $125,000.00
 Blue Ray Financial with their    50% Bonus Depreciation:                             $375,000.00
 equipment financing needs
                                  Regular First Year Depreciation Deduction:            $7,500.00
 to fuel their growth and
 success.                         Total First Year Deduction:                         $170,000.00
                                  Cash Savings on Your Equipment Purchase:             $59,500.00
                                  Lower Cost of Equipment After Tax Savings: $140,500.00
                                  Note: Calculated assuming a 35% tax bracket

                                 Because Section 179 was specifically designed to help spur business
                                 growth and increase purchasing power, nearly all types of equipment
                                 qualify for the tax savings. Eligible equipment is generally limited to
                                 tangible, depreciable property that is acquired for business use.

                                         Equipment purchased for business use, such as machinery
                                         Computers
                                         Computer software
                                         Business vehicles
                                         Office equipment and office furniture

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Blue Ray Financial                                                                 
       Advantage of the Benefits of Section 179

                     Not every business will receive the same benefits from the Section 179
                     deduction and bonus depreciation. It is important to consult with your
                     tax advisor because every business has its own unique financial

                      As you know, the IRS business tax codes are constantly changing. Tax
                     savings seen one year are not necessarily guaranteed the next. By 2013
                     the Section 179 tax breaks are expected to roll back to $25,000, which is
                     the deduction we saw in 2002.

                     Knowing that the Section 179 deduction and bonus depreciation are
                     going to drastically shrink in the coming years, you should seriously
                     consider acquiring the equipment your business needs in 2012. The tax
                     savings available to you this year are not guaranteed in 2013 and
                     beyond. The only way to lock in tax deductions for your business is to
                     acquire equipment and get it up and running before December 31,

                     Leasing Affords Your Business More Benefits Acquiring new equipment
                     for your business can be very expensive. By leasing your equipment, you
                     can fully leverage the tax breaks under Section 179 without having to
                     make a 100% cash payment. Leasing allows you to keep your cash and
                     credit lines open to help pay for everyday expenses, or to put toward
                     growth opportunities.

                     Blue Ray Financial is fully aware and knowledgeable of the tax savings
                     available to your business through Section 179. We have helped many
                     thousands of businesses lease much needed equipment and take full
                     advantage of these generous tax deductions.

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Blue Ray Financial                                                    
       Advantage of the Benefits of Section 179

Blue Ray Financial          Blue Ray Financial is composed of a group of highly experienced and
P.O. Box 750534             seasoned, certified, financial professionals. With our knowledge and
Forest Hills, NY 11375      expertise, we can find the right solution for all your financing needs.
Phone: 718.554.3841         Unlike local lending institutions, which only lend to the most credit-
Fax: 718.732.2405
                            worthy businesses, we have programs available for all credit types and
                            company sizes. Perfect credit is not the only factor we use in qualifying
Connect with us:            you for a loan, and If you business has good cash flow… You are
                            approved. If you business needs financing, we will guide you in choosing
                            the best option available. For more information, visit
                   You can also connect with Blue Ray Financial on
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Blue Ray Financial                                                           

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