If you have organized your auto activities into a business, you can take advantage
of SBA financing—which requires a down payment of only 10%—to finance your purchase
at Club Auto Sport. This multiplies the return on the actual dollars you invest
in the space for your collection.
Nine out of ten businesses qualify
More than nine out of ten small businesses qualify for financing through the
U.S. Small Business Administration. Why is this the best way to go? The SBA offers
several programs designed to provide below-market financing with a down payment
as low as 10%, to help successful small to medium-sized businesses conserve their
working capital for operations and expansion. So, on a commercial condominium
costing $300,000, for example, instead of needing to invest $75,000 (25%) to
$105,000 (35%) under a conventional loan, your business would only need to invest
$30,000 (10%), plus closing costs. That’s a lot of capital that you can put to
work elsewhere! TMC Development can prepare an SBA 504 loan structure for you.
And here’s the best part: with such low down payments, it’s not uncommon to
discover that the potential first-year tax benefits equal or even exceed the
required down payment. That’s why some business owners may find they are, in
a sense, being paid to own instead of lease. These companies are dollars ahead
from the very beginning—making the dream of business property ownership easily
attainable.
Of course, if you prefer to use conventional financing for your purchase, Borelli
Investment Company can guide you to a number of financial institutions you can
work with.
Learn more
To learn more about SBA financing and how to pre-qualify for a tailored financing
package that meets all the guidelines for a lender’s SBA package, please call
Borelli Investment Company at (408) 453-4700, or visit our lending partners listed
on this page.
Cost segregation pays dividends
The advantages start with real estate cost segregation, a smart way to accelerate
the depreciation on your business property. In simplest terms, cost segregation
lets you recover certain building costs over fifteen, seven, or even five years,
rather than depreciating the entire value of a building—minus the land cost—over
the standard 39 years.
Even the smallest businesses can use the accelerated depreciation of cost segregation
to save thousands of dollars in taxes up-front. Let Borelli Investment Company
explain how you can take advantage of this tax break NOW.
Run your own numbers using our customized, online
lease vs. buy calculator
Section 179 tax incentive offers more breaks. In addition to accelerated depreciation,
cost segregation gives you the opportunity to take Internal Revenue Code (IRC)
Section 179 deductions on your office condominium.
Business owners can file for a first-year deduction of up to $112,000 (2007
figure — adjusted for COLA each year) in accelerated depreciation on 5-
and 7-year personal property identified in the cost-segregation analysis.
When combined with the usual business deductions for real estate taxes, association
dues, and other expenses, cost segregation and Section 179 deductions can easily
add up to tens of thousands of dollars for the typical buyer—which makes Club
Auto Sport affordable for virtually everyone. A close examination of our "Lease
vs. Buy" analysis will show you how these benefits can add up. Of course, you'll
want to consult with your tax professional about your specific situation to learn
how these benefits might apply to your purchase.
Bottom line: today's unique tax advantages and attractive financing options
mean the time to buy at Club Auto Sport is now, and they put ownership within
the reach of more small businesses than ever before.
Note — The above discussion does
not take into account every tax situation for all businesses or individuals.
Not all tax laws have been considered—for example, passive loss and at-risk rules
or alternative minimum tax (AMT) requirements could alter the tax benefits. Potential
owners should contact a tax advisor before making purchase decisions. |
