Total cost of the equipment you would like to lease.
The maximum Section 179 deduction for property placed in service
in 2005 is $105,000. This limit is reduced by the amount by which
the cost of Section 179 property placed in service in 2005 exceeds
Amount of depreciation that can be claimed for the asset during
the first year of service (20%). Calculated under IRS MACRS, 5 year
life, 200% declining balance.
Total depreciation you may claim in first year of service (includes
Section 179 deduction).
Tax savings are calculated at a 40% marginal rate for the aggregate
of federal, state and local taxes.
Depreciation remaining for following four years.
Bottom line cost of equipment in the first year after all tax
savings are taken into consideration.