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How does the

equipment leasing strategy stack up to investing in real estate?

Dwight Howard

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FOUNDER

Emma Johnson

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PROJECT MANAGER

Emma Johnson

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PROJECT MANAGER

Ready to get started?

next steps

Start saving money

After the equipment purchase is completed, half of the advisory fee will be refunded within 2 months.

Option 1

  • Advisory fee

Total value: $5,297

Today Just $1,898

Option 2

  • Advisory fee + LLC formation

Total value: $7297

Today Just $2,898

Equipment Leasing FAQ’s

What types of income can be offset?

You can offset W2 income, business income (Schedule C and K1), and capital gains. Keep in mind that losses applied to W2 income are subject to business loss limits. For 2025, the limits are $313,000 for single filers and $626,000 for married couples filing jointly.

What are examples of material participation?

To deduct depreciation losses from your active income, you need to participate in the activity. Here are some ways you can participate:

1. Every week, you’ll receive an email to opt in for renting your equipment.

2. Check your equipment via your dashboard, which I usually do for 5-10 minutes each morning.

3. Visit the locations where your equipment is kept. Your equipment might be spread across different states, giving you a variety of places to visit.

4. Consider the time spent deciding to take action. For example, if you decide to purchase more equipment next year, that time counts.

5. In May, the rental platform holds a two-day owner appreciation event at their headquarters.

What happens if my equipment doesn't rent?

If the rental company hits their monthly rental cap, the revenue gets shared among all equipment owners. This cap is usually reached in the first 7-8 days of the month. Even if your equipment doesn’t rent, you’ll still get your share of the revenue.

Do I need insurance?

You’ll be added as an additional insured on the rental platform’s policy, so no extra insurance is needed.

Can I pay cash for the equipment?

Yes, you can pay cash. However, one of the main benefits is using leverage. Most banks only require a 10% down payment, which allows you to buy more equipment or invest your funds elsewhere.

Can I choose where my equipment is located?

The platform tries to place your equipment in areas you prefer, but it ultimately depends on where the rental company needs it to meet customer demand.

Can I use my own bank to finance the equipment?

Yes, you can use your own bank, but they need to agree to specific loan terms in order for the program to function properly. The loan should be on a 10-year amortization schedule with the current interest rate.

What happens if the economy crashes and no one rents the equipment?

During economic downturns, contractors are more likely to rent equipment instead of buying it. To just cover your loan payment, the utilization rate would need to drop to 43%. For example, during the 2008 recession, United Rentals’ utilization rate dropped to 53%.

How much rental income will I receive in the first month?

The rental income for the first month is prorated based on when you purchase the equipment. You’ll receive the full rental income starting in the second month, and that payment will be made in the third month.

How much will I receive when the equipment is bought back?

The equipment will be bought back at year 5 or 6. Typically, the buyback occurs at the year 5 mark. The equipment is bought back for 68% of the purchase price. There is around 57% remaining on your loan. You will receive the difference which ends up being your initial capital plus a little extra.

Will I owe taxes when the equipment is bought back?

Because the equipment is bought back at 68% of the purchase price and no longer in service, you will have to recapture 68% and pay taxes on it. To offset this, you can buy more equipment or use a different strategy. 32% is free from taxes.

Why does the equipment platform charge a 3% platform fee?

The platform fee covers administrative costs, maintains the platform, and ultimately helps to keep their lights on. The platform fee is a deductible expense to your business. Some banks might roll the platform fee into the loan, however, this will increase your loan payment and decrease the return on your investment.

Don't hesitate to

contact us for any information.

+803 417 1499

@dwightdye

1409 NW Broad St, Murfreesboro, TN 37129

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