PROJECT:
HEAVY EQUIPMENT
TAX STRATEGY
ABOUT:
This strategy uses IRS Section 179 and Bonus Depreciation rules to turn a 10% down payment on heavy
construction equipment into a 10:1 write-off. Investors form an LLC, purchase equipment through syndicate
partners, and lease it to operators like EquipmentShare. Monthly lease income covers debt service with a small
positive cash flow, while the full equipment value is depreciated in year one. After 6 years, the equipment is
repurchased at 58% of value—resulting in principal recovery and capital gain. Ideal for business owners, W-2 high
earners, and real estate pros looking for tax-efficient income. Investors must document ~100 hours/year for
active participation benefits. Less of a cash flow play, more of a tax weapon.
EXPECTED RETURNS:
14% NET annual return (after all fees, maintenance, and insurance)
~$649/month net cash flow from lease-to-own structure
Equipment repurchased in Year 6 at 58% of original value (expected ~$135K return post-loan payoff)
Major tax advantage:
~$1M deduction on $100K investment
Immediate year-one depreciation using Section 179 + Bonus Depreciation
Can offset up to $626K in passive income (or more with material participation)
W-2 earners can reduce AGI (may require W-4 adjustment)
DETAILS:
Deal Type: Alternative Asset
Valuation: $1M Tax Write Off
Expected Raise: ~$100,000
Min. Investment: $42,000
PROJECT LINKS:
NOT SURE WHERE TO START?
PROJECT:
HEAVY EQUIPMENT TAX STRATEGY
ABOUT:
This strategy uses IRS Section 179 and Bonus Depreciation rules to turn a 10% down payment on heavy construction equipment into a 10:1 write-off. Investors form an LLC, purchase equipment through syndicate partners, and lease it to operators like EquipmentShare. Monthly lease income covers debt service with a small positive cash flow, while the full equipment value is depreciated in year one. After 6 years, the equipment is repurchased at 58% of value—resulting in principal recovery and capital gain. Ideal for business owners, W-2 high earners, and real estate pros looking for tax-efficient income. Investors must document ~100 hours/year for active participation benefits. Less of a cash flow play, more of a tax weapon.
EXPECTED RETURNS:
14% NET annual return (after all fees, maintenance, and insurance)
~$649/month net cash flow from lease-to-own structure
Equipment repurchased in Year 6 at 58% of original value (expected ~$135K return post-loan payoff)
Major tax advantage:
~$1M deduction on $100K investment
Immediate year-one depreciation using Section 179 + Bonus Depreciation
Can offset up to $626K in passive income (or more with material participation)
W-2 earners can reduce AGI (may require W-4 adjustment)
DETAILS:
Deal Type: Alternative Asset
Valuation: $1M Tax Write Off
Expected Raise: ~$100,000
Min. Investment: $42,000
PROJECT LINKS:
NOT SURE WHERE TO START?
