First, let’s talk tax deductions. IRS Tax Section 179 allows your businesses to deduct the price of shipping container you lease during the year. It essentially allows you to write off the total cost of the shipping container from your income.

The amount you save in taxes commonly exceeds the lease payments, which makes this very attractive to the bottom line.

The $1 Buyout Lease (Most Popular)

Use it like you own it. Also called a Capital Lease or Lease-To-Purchase where the lessee at the end of lease term owns the shipping container for $1 or 10% purchase agreement. Use this option to cover 100% of the purchase price, taxes, and shipping. Businesses often use this type of lease when they intend to keep the shipping container for an extended period set at the time of the lease issue. And it’s 100% deductible.

What’s a “True Lease” and why would this be better?

By adhering to a monthly payment schedule a True Lease gives you the option of purchasing the shipping container for fair market value when your lease has matured. At the end of your lease term, you have the choice of returning your leased conex box, continuing your current lease with a FMV renewal option, or purchasing the conex box you’re currently leasing at its fair market value.

The payments are typically lower than they are for a “Standard Long Term Rental” and flexible payments are available, as well. For example, monthly adjustments may be made if you can afford to pay a little more or a little less each month. The entire cost of the shipping container can be financed, which means very little cash is needed up front. Leasing the shipping container you need, rather than purchasing it, frees up funds for other business expenses.

That’s pretty smart.

Section 179 is a tax incentive that allows small businesses to write off the entire purchase price of qualifying shipping container in the year it was purchased. The benefits of Section 179 are dramatic for small businesses which use leasing to acquire their shipping container. A business may deduct the cost of certain types of property as an expense, rather than requiring the cost of the property to be capitalized and depreciated over time. Section 179 allows businesses to deduct costs of capital assets right away rather than depreciating them over their useful life. If you lease the purchase of a qualifying shipping container, you can deduct the full purchase price from your gross income. Businesses use Section 179 to immediately buy necessary equipment, instead of waiting. Small businesses can write-off the entire cost of their shipping containers on their 2022 tax return.

This deduction is good on new and used shipping containers. To take the deduction for tax year 2022, the shipping container must be financed or purchased and put into service between January 1, 2022 and the end of the day on December 31, 2022.

2022 Spending Cap on Equipment Purchases = $2,700,000

This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar-for-dollar basis. This spending cap makes Section 179 a true “small business tax incentive”.

Bonus Depreciation is offered in 2022 at 100% and generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used shipping container.

From the Small Business Jobs Act of 2010, the Internal Revenue Service (IRS) introduced Section 179 in as an incentive to help small businesses and boost the economy. In a departure from recent years, the bonus depreciation now includes used shipping containers, as well.