CASE STUDIES
INDUSTRIES
Tax Depreciation: A HondaJet Success Story
WELL PRICED
Tax Savings Win
WELL STRUCTURED
Tax Cuts and Jobs Act + Section 179 Deduction
WELL FINANCED
EFFI Provides Tax-Smart Aviation
Maximizing Tax Benefits and Travel Efficiency
Client Situation: Our client, a frequent traveler for both business and personal reasons, approached EFFI just before the fiscal year-end to explore tax-saving strategies.
EFFI Provided:
- Tailored Financing: EFFI Finance offered personalized financing options, covering down payments, amortization terms, fixed interest rates, and addressing the balloon payment, all customized to align with the client’s financial goals.
- Tax-Efficient Strategies: Leveraging EFFI Finance’s expertise in aircraft financing and tax planning, John was able to acquire the HondaJet as an exciting asset while simultaneously benefiting from tax advantages, such as depreciation write-offs. This strategy optimized his financial position, making it an appealing solution for highly successful CEOs with similar aspirations.
How We Structured the Deal:
- The financing structure chosen included a down payment and was amortized over 8 years.
- The rate was fixed for the term which was 5 years.
- The balloon remaining would be either paid off at the end of the term, refinanced, or even paid off with the exchange of another aircraft.
- Documentation was completed in-house and minimized the total cost of the transaction.
More About Section 179 Deduction: The Section 179 deduction, which permits business owners to deduct the full purchase price of qualifying equipment, such as HondaJets, up to a specified limit, from their taxable income in the year of purchase. The TCJA had increased the deduction limit to $1 million, making it an attractive option to consider.
More About The Tax Cuts and Jobs Act (TCJA) of 2017: I introduced favorable tax provisions related to bonus depreciation for business aircraft. The legislation allowed companies and business owners to depreciate the cost of a new aircraft, including HondaJets, more quickly and substantially, leading to significant tax savings.
See other projects that we’ve funded successfully.
Transportation & Tilted Vehicles
Apple Campus Heavy-Haul Project: $4.5 Million
The largest contract of this heavy haul trucking company’s history came from Apple, Inc. The project required additional trailers and power units in order to prepare for growth in their business and meet promises to their new client...
VIEW FUNDED PROJECT
Food & Beverage
BigBox Food Manufacturer: $11.5 Million
While the client had a concentration in revenue with their BigBox retailer (think Costco or Walmart), we relied on the management experience, long-time relationship with the major brand, and multiple-SKU offering. The facility included production equipment in a multi-faceted line, catwalks, HVAC, and even a packing line.
VIEW FUNDED PROJECT
Construction
Construction and Demolition Project: $6.0 Million
When providing union and non-union labor for construction projects, a company must segregate its assets. For union jobs, these assets must not be leased from a non-union entity. Set up an internal startup for inter-company rentals to meet these critical regulations as a construction company. EFFI fulfilled the asset transfer and refinance to establish an internal startup rental company for this construction & demolition business owner.
VIEW FUNDED PROJECT