Medical Device Rental

Overview

Using Section 179 Depreciation Benefits to Significantly Reduce Income Taxes and Subsequently Generate Monthly Cash Flow from Rented Medical Devices

Solution Detail

• This program is available throughout the year
• Submission of client financial overview via Tax Analysis Tool on Alliance Platform
• Introductory Meeting – 30 min via Zoom
• Due Diligence Materials sent by TaxWealth
• Strategy Presentation Meeting – 1 hour via Zoom
• Strategy Engagement via DocuSign – $5,000.00 Engagement Fee paid at the time of engagement
• Minimum initial Medical Device purchase of $250K
• 20% down payment – Min. $50K (5×1 leverage)
• Purchase of Medical Devices made through LLC
• Use IRC Section 179 to capture depreciation benefits on the purchased Medical Devices and offset ordinary income
• Bonus depreciation can be used to accelerate a portion of the tax benefit in the current tax year
• The remaining TaxWealth Planning Fee is paid once the Medical Devices are purchased
• Ongoing management and administration of the LLC is the responsibility of the LLC’s Managing Member
• Annual expenses for maintenance of this strategy include preparation of LLC Tax Return

Target Use Case(s)

• Accredited Investor – $200K Income for 2 years or longer OR $1M Net Worth Independent of Personal Residence.
• Minimum Contribution – $50K downpayment on purchase of Medical Devices
• While this is an active business enterprise, the 100-hour Material Participation Rule does not apply

Referral Compensation

• TaxWealth’s $5,000 Analysis Fee is not subject to referral compensation splits.
• Based on TaxWealth’s Flat Fee Compensation Schedule for Tax Strategy Engagements
• Referral Compensation from the Strategy Partner is 10% and will be added to the engagement split due to the Referring Advisor
• Alliance Partner:  50/50 Split of the Planning Fee & Referral Compensation
• 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