Bonus Depreciation For 2012

Using Section 179 and/or Bonus Depreciation with an Equipment Lease or Equipment Finance Agreement might be the most profitable decision you make in 2012.

Why? Because the amount you deduct will exceed your cash outlay for 2012 when you combine (i) a properly structured Equipment Lease or Equipment Finance Agreement with (ii) a full Section 179 deduction. It is a bottom-line enhancing tool (plus, you get the new equipment and software you're adding to your business).

Also, the '$179 bonus per $10,000 financed' is available thru 12/31/2012. This means that you (a) get your equipment, vehicles, and/or software now, (b) get to take full advantage of the Section 179 deduction in 2012, and (c) get Section 179 bonus cash as well.

Leasing and Section 179

Did you know that your company can lease equipment and still take full advantage of the Section 179 deduction? In fact, leasing equipment and/or software with the Section 179 deduction in mind is a preferred financial strategy for many businesses, as it can significantly help with not only cash flow, but with profits as well.


The obvious advantage to leasing or financing equipment and/or software and then taking the Section 179 Deduction is the fact that you can deduct the full amount of the equipment and/or software, without paying the full amount this year. The amount you save in taxes can actually exceed the payments, making this a very bottom-line friendly deduction (you are reading this correctly; in many cases, the deduction will actually be profit).

ELFA May Pull Support

ELFA might pull support for lease-accounting project 
ELFA said it might withdraw support for development activity related to the lease-accounting standard. President and CEO William G. Sutton said the proposal is "fraught with difficulties" in a letter to the Financial Accounting Standards Board and the International Accounting Standards Board. "Unfortunately, since we do not believe the Boards have appropriately resolved the question of lessee cost allocation, we are seriously considering withdrawing our support for the issuance of a final standard based upon the tentative conclusions reached in the recent redeliberations," Sutton wrote.

Read entire letter on ELFA.org/news

Mazuma Capital: Our Customers say it best

Mazuma Capital: Our Customers say it best:

 “As our company searches for more opportunities for lease financing, I received a call from Mazuma Capital Corp. As I laid out to Mazuma and other companies what we were looking for in the way of lease financing, Mazuma came through with the best over all cost of funds as well as meeting our needs and time schedules. I have enjoyed working with Mazuma Capital Corp, because of their willingness to be flexible and the way they keep me updated on all that happens through the process. Everyone there is so easy to work with and I will continue to work with them on an ongoing basis. My experience was well within what I hoped for from a lease financing company.”

–Tom, VP of Finance & CFO

FASB Floats Early Ideas

If private companies should have different accounting standards, the Financial Accounting Standards Board is looking for ideas on how those differences should be established. FASB published some early ideas for how financial reporting requirements should be differentiated for private companies, and it is looking for feedback on that preliminary thinking before moving to the next step.  

The “invitation to comment” published by FASB maps out six critical issues that differentiate private companies from public companies, leading to the conclusion that accounting requirements for private companies should differ as a result. FASB says the type and number of users for financial statements are different for private companies than public companies, and they have more direct access to management to ask questions. Private companies have different investment strategies, and different ownership and capital structures. They have thinner resources than public companies to manage the accounting function, and as a result it takes them longer to get up to speed on new accounting pronouncements.

As a result of those differences, FASB says, the accounting rules for private companies might logically differ in some key areas, including recognition and measurement, disclosures, and presentation. It might also be reasonable to give private companies longer lead times to adopt new standards as they are issued, FASB says. That's a broad view of the framework FASB is considering, but the board looking for feedback on that line of thinking before proceeding with a final framework.

In the meantime, the Financial Accounting Foundation is forming the Private Company Council to help identify where differences in accounting standards might be appropriate for private companies to reduce the cost and complexity of preparing financial statements that comply with U.S. Generally Accepted Accounting Principles. FASB and PCC will consider feedback to the invitation to comment and finalize the framework before they begin writing any new standards for private companies. FASB is looking for feedback by Oct. 31.

In a separate project to gather feedback on business combination rules, FAF also is looking for users of financial statements, preparers, auditors, academics, and regulators to participate in a survey that willassess the effectiveness of Financial Accounting Statement No. 141R: Business Combinations. FAF is conducting its latest post-implementation review of FAS 141R, now contained in the Accounting Standards Codification, to determine whether the standard achieved what was intended. FAF is asking those interested in participating to register online.

http://www.complianceweek.com/fasb-floats-early-ideas-on-private-company-accounting/article/253288/

Equipment Leasing Plan Could Make Lessees Losers

The FASB still undecided.  Under the standard setters' new proposal, companies that lease equipment could see their profits shrink in the early years of a contract, experts say.  

Equipment Leasing Plan Could Make Lessees Losers

East Coast Coal Fired Power Provider Partners with Mazuma Capital in Funding a Fly-Ash Conditioning System

DRAPER, UTAH July 2012–Mazuma Capital, a leading national direct lender, today announced it has funded $1.3M for a large East coast power provider.

The power provider sought a knowledgeable funding source with the ability to provide a solution to a complicated transaction. In order to comply with state environmental standards the company needed to condition their waste into coal fly-ash before depositing waste in state landfills.

The company was set up as a multi-layered organization with disparate corporate entities having varying degrees of ownership.  Due to this structure and the difficulties it posed, the incumbent bank for the power provider passed on providing financing for this equipment, in spite of the fact that the company has excellent credit. The additional challenge was financing almost 50% of “soft costs”, to include labor and installation along with a blanket UCC filing that would not subordinate.

After navigating the review of several of the company’s opaque organizational charts, the risk factors, and equipment, Mazuma agreed to fund this transaction.

“This power producer had a very unique set of complications that we were able to work through. Our team was innovative and methodical in our approach to the deal, which ultimately provided the terms in the manner the company needed. It is transactions of this nature that really spotlight the unique funding abilities Mazuma has within the industry”, said Jared Belnap, CEO and President at Mazuma Capital.

About Mazuma: Mazuma Capital is committed to our client’s success. Our unique capabilities and innovative product offerings provide solutions accelerating financial growth. Servicing both rising companies and established businesses, Mazuma continues to secure its position as the middle-market industry leader. We build long-term relationships by delivering on our commitments. Mazuma co-authored the Utah Best Practices Alliance. Mazuma Capital subscribes to the ELFA Code of Fair Business Practices and NAELB code of ethics.

Media Contact:

Julie Fuchs

801-816-0800 Ext. X291jfuchs@mazumacapital.com

IT Spending On The Rise

Fueled by an accelerating move to cloud computing, and by a boom in associated telecommunications services, worldwide information technology spending is increasing somewhat faster than expected, according to industry analysts at Gartner.

Over all, people will spend $3.6 trillion on information technology in 2012, the research firm said. This represents a 3 percent increase from 2011, when $3.5 trillion was spent, Gartner said, and is up from the 2.5 percent increase projected three months ago.

The increase, while modest, is notable because it is happening in the face of a financial crisis in Europe, slow growth in the United States, and a slowdown in China’s economic growth.

Spending on public cloud services is expected to increase 20 percent, to $109 billion, from $91 billion in 2011. By 2016, Gartner said, this expenditure could nearly double, to $207 billion.

That would still be a relatively small portion of the total spending, though it tends to represent considerable computing power and potentially more efficient I.T. systems.