Equipment Rental Program

Overview

Using Section 179 Depreciation Benefits to Significantly Reduce Income Taxes and Subsequently Generate Monthly Cash Flow from Rented Commercial-Grade Equipment

Solution Detail

• This program is available throughout the year
• Introductory Meeting – 30 min via Zoom
• Due Diligence Materials sent by TaxWealth
• Strategy Presentation Meeting – 1 hour via Zoom
• Strategy Engagement via DocuSign – 50% Engagement Fee paid at the time of engagement
• Formation of an LLC to buy and then rent commercial-grade equipment
• Minimum initial equipment purchase of $300K
• 10% down payment upon approval by the lender – Min. $30K
• Purchase of Equipment made after approval by lender
• Use IRC Section 179 to capture depreciation benefits on the purchased equipment and offset ordinary income
• Bonus depreciation can be used to accelerate a portion of the tax benefit in the current tax year
• The remaining 50% Engagement Fee is paid once the equipment is purchased
• Ongoing management and administration of the LLC is the responsibility of the LLC’s Managing Member

Target Use Case(s)

• Accredited Investor – $200K Income for 2 years or longer OR $1M Net Worth Independent of Personal Residence.
• Minimum Contribution – $30K downpayment on purchase of equipment
• Credit-worthy to qualify for the loan used to purchase the equipment
• This is NOT a passive program, the client must be able to actively manage this business strategy

Referral Compensation

• Based on TaxWealth’s Flat Fee Compensation Schedule for Tax Strategy Engagements  (Insert Document Link Here)
• Alliance Partner:  60/40 Split of the Planning Fee Compensation in favor of the Alliance Partner
• NOTE: If TaxWealth Receives a simple introduction and completes all the work of analysis, education, document collection, and strategy implementation, the Referral Compensation Split will be 20% to the Alliance Partner
• Any Advisor or Client Referral from the TaxWealth Alliance agrees to these terms unless otherwise stated
• NOTE: If the Client fails to purchase equipment, 50% of the engagement fee will be returned