June 2006 Newsletter

Introducing . . . Rick Degagné, Credit Manager

Clients have great appreciation for a credit manager that will go out of their way to get the correct information that will help them secure their desired lease.

Employed in the financial industry since the mid-90's, Rick provides very efficient fast service processing for lease credit applications and collections.  His extensive experience is focused to give every client the best chance for credit success.

When Is 20% Not 20%?

When Revenue Canada Makes The Rules.  Many purchasers think that they can depreciate their new equipment they purchased at 20% per year so that 100% would be depreciated over 5 years.

Here's the reality with Revenue Canada:

Example:  Equipment sold for $10,000

The "1/2 Year Rule" applies.  In all cases, Revenue Canada allows only 50% of the eligible deduction for the first year, and the succeeding years are calculated on the declining balance.  In this case, it would take over 11 years to depreciate this asset to 90% of its original price.

Use leasing to accelerate your tax savings.  Remember, lease payments are 100% deductible, so you can enjoy significant after tax savings.

Call one of our lease consultants today to have a lease vs buy calculation prepared for you.

ON THE LIGHTER SIDE. . .

Golf Caddy Comments Golfer: "I'd move heaven and earth to break 100 on this course." Caddy: "Try heaven, you've already moved most of the earth."   Golfer: "Do you think my game is improving?" Caddy: "Yes sir, you miss the ball much closer now."   Golfer: "Do you think I can get there with a 5 iron?" Caddy: "Eventually."   Golfer: "You've got to be the worst caddy in the world." Caddy: "I don't think so sir. That would be too much of a coincidence."   Golfer: "Please stop checking your watch all the time. It's too much of a distraction." Caddy: "It's not a watch - it's a compass."   Golfer: "How do you like my game?" Caddy: "Very good sir, but personally, I prefer golf."   Golfer: "Do you think it's a sin to play on Sunday? Caddy: "The way you play, sir, it's a sin on any day."

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