Mitel’s UC Advanced Mobile for iOS Makes the Bring-Your-Own-Device Trend Easier on IT

OTTAWA, Ontario, Sept. 26, 2011(GLOBE NEWSWIRE) — Mitel(Nasdaq:MITL), a leading provider of unified communications software solutions, today announced that Mitel Unified Communicator® (UC) Advanced software is now available on the iOS mobile operating system for Apple® iPhones® and iPads®, the leading choice among Small- to Medium-Enterprises(SMEs)¹. This offering further extends the reach ofMitel’s unified communications platform on mobile devices, allowing IT managers to accommodate the BYOD phenomenon in which workers bring their personal mobile device into the workplace.

The BYOD movement is one of the many additional challenges that make it difficult for IT departments to cope with security and control issues in the enterprise.Mitelis now making it possible to handle this trend with greater ease through unified communications for iOS and other mobile platforms. This offering continues to build onMitel’sFreedom architecture, which eliminates the closed, single-vendor unified communications architecture that has historically defined the industry.Mitel’sFreedom architecture delivers a best-in-class approach to communications infrastructure. IT now can deliverMitelunified communications applications via mobile clients across iOS-based as well as RIM- and Android-based mobile devices, representing the vast majority of mobile devices in business environments.

“Mitel Unified Communicator Advanced for iPhone and iPad, in combination with the Freedom architecture, allowed our employees and our IT department to utilize our existing infrastructure and devices of choice without having to purchase new equipment,” saidMatthew J. Estes, director of Strategic Initiatives,TaxResources, Inc.”The product’s flexibility and functionality were key factors in our decision to go withMitelfor our customized unified communications solution at TaxResources.”

“We recognize that delivering unified communications software to the iOS platform for Apple products is essential to our customers,” saidRon Wellard, executive vice president and general manager, Mitel Communications Solutions. “The BYOD phenomenon is one companies can’t ignore. By supplying a single software stream that works on the most popular mobile platforms and offering exceptional adaptability to existing infrastructure within an organization,Mitelaims to change the game in unified communications software.”

Mitel UC Advanced provides desktop and mobile users a single interface to access all of theirMitelcommunications capabilities, including voice, video, instant messaging, conferencing and presence.

Mitel UC Advanced Mobile for iOS includes the following capabilities:

• Search the corporate directory and click-to-dial from corporate contact list to place calls through the corporate network.
• View missed, dialed, and received calls.
• Access visual voicemail from your office extension and manage messages by preference rather than sequence.
• Automatically update presence status and call routing preferences based on your location, or time of day.

UC Advanced Mobile for iOS is available to UC Advanced users in Apple’sApp Store:

• iPads: http://itunes.apple.com/us/app/uca-mobile/id448794620?ls=1&mt=8
• iPhones: http://itunes.apple.com/us/app/uca-mobile-for-iphone/id457628484?ls=1&mt=8

LAS VEGAS, NV — (MARKET WIRE) — 08/30/11 — Today at VMworld® 2011, VMware and Mitel unveiled a significant technical advancement designed to considerably increase the already growing deployment of desktop virtualization for IT departments around the world. Specifically, Mitel will integrate its virtualized Unified Communicator® (UC) Advanced client software with VMware View™ 5, enabling Mitel and VMware to deliver soft phone and mobile device integration into a desktop virtualization environment. This unique collaboration will dramatically extend the power of desktop virtualization, enabling a user’s voice solution and UC applications to be deployed together as a single unified solution in a virtual desktop environment. By doing so, IT departments can significantly reduce costs while extending their desktop and mobile environment to anywhere a user has an Internet connection.

“The Chicago Bears have already deployed Mitel’s Unified Communicator Advanced, so we are already familiar with the benefits of Mitel’s architecture,” saidJason Saidoo, senior director of information technology for the Chicago Bears. “The idea of virtualizing both the desktop and the desktop phone, thus unifying their functionality, is very attractive to an organization like the Chicago Bears, since we require mobility and secure desktop access from the road. As a result of this announcement, we have advanced our own timeline to convert our IT infrastructure to a completely virtualized environment.”

“Today’s announcement represents a significant step forward in the evolution of desktop virtualization,” saidRich Costello, senior research analyst at IDC. “These new technology breakthroughs will help accelerate adoption of desktop virtualization. IT departments should begin evaluating how and when they should make the transition to this type of environment.”

VMware View and Mitel UC Advanced
This integration represents a significant technical achievement. Today, users cannot stream virtualized Mitel voice applications to a virtual desktop without significant impact to performance and latency. In addition to accessing the desktop with VMware View, users will also be able to access their collaboration tools, including voice, video, presence, secure instant messaging, audio and web conferencing, document sharing, voice messaging and email, from their VMware View client.

Desktop virtualization using VMware View offers IT tremendous benefits by moving desktops and applications into the cloud and delivering them as a managed service. IT administration is more automated and efficient, security is improved and the total cost of desktop ownership can be reduced by as much as 50 percent. End users can get a rich, consistent and high-performance desktop experience from any qualified device — including mobile devices like tablets and smartphones — whether in the office or on the go.

VMware and Mitel are combining the capabilities of VMware View with Mitel’s UC Advanced client software, giving users of a virtualized desktop access to both their desktop applications and their communications apps, essentially making both their desktop computer and communications device (mobile, soft phone or desk phone) available to them no matter where they may be.

“VMware and Mitel have helped ‘crack the code’ on streaming communications and collaboration applications to the virtual desktop, thus giving IT freedom from the ‘walled garden’ approach driven by legacy IT vendors,” saidChristopher Young, vice president and general manager, End-User Computing, VMware. “Mitel’s Freedom architecture, which already delivers an open, single software solution on a virtual machine, has now been augmented to support streaming on the VMware View™ desktop client software. By doing so, VMware is taking another step forward in enabling universal desktop access, delivering a truly open model that benefits both IT and the user.”

“IT departments now have a powerful new tool to help them manage their infrastructure,” saidStephen Beamish, Mitel’s vice president, marketing and business development. “With UC as another virtualized application available on any device, they will have greater control and flexibility than ever while still reducing capital costs.”

Interested parties can view a demo of this joint solution at VMware’s booth # 621 and Mitel’s booth # 560 at VMworld2011, currently taking place in at the Venetian Hotel and Resort in Las Vegas through Thursday, September 1,2011.

Additional Resources

• Twitter: @VMwareEvents (hashtag #vmwarecloud), @Mitel
• VMworld and Mitel Blogs: http://www.vmworld.com/blogs/vmworld; www.mitel.com/mitelfreedom

OTTAWA, Aug. 3, 2011 (GLOBE NEWSWIRE) – Mitel® (Nasdaq:MITL), a leading provider of unified communications and collaboration (UCC) software solutions, today announced that Mitel NetSolutions’ Mitel Mobile service has debuted the 3G/4G Android-based HTC Detail, making it the first US Mobile Virtual Network Operator (MVNO) to offer a 3G/4G wireless android handset solution.

New enhancements have also been made to the NetSolutions product portfolio, including NetSolutions ExpressSIP for Mitel Call Control and Mitel AnyWare. The new functionality effectively extends the single software stream of Mitel’s Freedom Architecture through cloud based deployments, giving users access a powerful suite of advanced business UC, mobility and communications applications, to achieve an ‘in-office’ experience from anywhere, on any device.

“Mitel has a unique perspective on the future of business communications, and leads the charge toward providing a true desktop experience and functionality within — and beyond — the enterprise,” said, Everett Mastrich, vice president of Information Systems of Airefco, Inc. ”With these new additions to the NetSolutions platform, as well as a mobile service that allows users to truly take advantage of 4G speeds, Mitel continues to break down the barriers to operational transparency, and ensure business continuity to both Wireline and wireless communications.”

HTC Detail

The HTC Detail is a 3G/4G dual-mode handset capable of taking advantage of true 4G speeds over the Mitel Mobile network. Based on the Android 2.2 operating system, the Detail allows users to perform bandwidth-intensive tasks such as video streaming and broadcasting.

Additional key features of HTC Detail 3G/4G include:

• 3.6″ capacitive display with pinch-to-zoom and tactile feedback.
• Simultaneous voice and data capability in 4G and Wi-Fi coverage areas, enabling Web surfing and more while talking.
• Updated HTC Sense, highly acclaimed user experience, which includes FriendStream™ to integrate Facebook, Twitter and more into a single flow of updates.
• Visual voicemail.
• Messaging — personal and business email, IM and text messaging.
• 3G/4G Mobile Hotspot capability — connects up to eight Wi-Fi enabled devices.

Enhancements to NetSolutions Portfolio

Mitel’s ExpresSIP service brings cloud economics to the customer’s premise or data center based Mitel UCC Communications Solutions by delivering a local telephone number with unlimited local and long distance calling to the US and Canada for as low as $7.00 per user per month. It also supports flexible deployments for multi-location enterprises in centralized or virtualized environments. ExpresSIP delivers a feature set that emulates the public switched telephone network in an all IP environment to allow for centralized deployment for geographically diverse locations and enterprises, while supporting localized caller presence and E911. In addition, Mitel NetSolutions bundles business continuity routing between a user’s office number and their Mitel Mobile device at no additional cost, in order to provide a converged wireline and wireless communications’ solution.

Finally, to enable customers to deploy a managed, cloud-based, UC solution, Mitel NetSolutions now offers the Mitel AnyWare cloud communications services in the US. Mitel AnyWare harnesses the single software stream of the Mitel Freedom Architecture to deliver a cloud-based communications solution utilizing the same core software and functionality of Mitel’s award winning premise-based enterprise UCC solutions, in a flexible, cloud-based deployment that is highly scalable and robust.

Mitel AnyWare delivers cloud-based unified communications service to give users access to a full suite of enterprise class voice and unified communications applications that also include key mobility integration features and wireless 3G/4G network redundancy. The application offers enterprise class unified communications features bundled with Mitel’s attractive, ergonomic IP phones, or a softphone client and local telephone service, with unlimited calling to the US and Canada for an affordable fixed monthly fee.

“Mitel is leading the industry in providing Unified Communications Solutions that fully integrate traditional communications networks with IP and mobile networks, in order to provide users access to enterprise class communications features from their device of choice, over any type of network,” said Jon Brinton, president of Mitel’s NetSolutions division. “The addition of the HTC Detail as the first 3G/4G handset in our Mitel Mobile lineup further reinforces our commitment to offering best in class integrated solutions for our customers.”

For more information on Mitel NetSolutions, visit www.mitel.com/netsolutions.

Indianapolis Convention Center Hotel Uses Mitel Solutions to Increase Productivity

PHOENIX, June 29, 2011 (GLOBE NEWSWIRE) — Mitel (Nasdaq:MITL), a leading provider of Unified Communications (UC) software solutions, today announced JW Marriott Indianapolis has selected and deployed Mitel’s Unified Communications solution based on its Freedom architecture. With 33 floors, over 1000 guest rooms, and 104,000 square feet of convention space, the JW Marriott Indianapolis is the premier convention center hotel in the Midwestern U.S. It is using Mitel as the foundation for its pure IP voice infrastructure covering every room and meeting area.

“Once the decision was made to use IP, Mitel quickly emerged as the best choice among a crowded field of vendors,” said Ken Barnes, vice president, Information Technology for White Lodging, owner of the JW Marriott Indianapolis. “Mitel’s IP architecture has enabled me to deliver communications to our hotel and convention complex, including over a thousand guest rooms, using single wire infrastructure, thus reducing deployment costs significantly. I also have the flexibility to improve guest service and response from mobile staff, and create impromptu contact centers anywhere in the hotel if need be. With IP connectivity in the guest rooms it can enable us to deliver web based information and services directly on the Mitel devices deployed throughout.”

White Lodging selected Mitel Communications Director, along with multiple models of advanced IP phones for the JW Marriott Indianapolis deployment. Working with Design Communications, Inc. (DCI), a premier provider of telecommunications systems and services for over 20 years, Mitel worked with White Lodging to install the system, including advanced features such as contact center functionality, in-building mobility and more. The joint Mitel/DCI deployment has also allowed for future capabilities to be added, including SIP trunking and applications for guest services.

“In terms of hospitality, this is one of the biggest IP voice deployments we’ve seen,” said Bob Murphy, vice president of hospitality sales for DCI. “Together, Mitel and DCI were able to get this done under a tight schedule. The end result is a premier convention center hotel with a very sophisticated voice infrastructure deployment”

“DCI has been an outstanding partner throughout this deployment,” said Stephen Beamish, Mitel’s vice-president of corporate marketing and strategic alliances. “The Mitel solution has helped Marriott achieve its goals in improving efficiency and guest satisfaction, both critical in this industry.”

Mitel Freedom Architecture Enables Scalable and Seamless Communications Across the Bears Organization

PHOENIX, June 2, 2011 (GLOBE NEWSWIRE) — Mitel® (Nasdaq:MITL), a leading provider of unified communications and collaboration (UCC) software solutions, today announced that legendary NFL franchise, the Chicago Bears, have selected Mitel’s Freedom architecture to enable collaboration and communications across the entire organization. The solution provides seamless unified communications between multiple offices and staff members working remotely or travelling between locations. A video of Chicago Bears staff discussing the deployment can be viewed at http://www.mitel.tv/videos/CUSTOMER_EXPERIENCE_CHICAGO_BEARS_NA

“A key differentiator setting Mitel apart from everybody else is the flexibility of the Freedom architecture,” said Jason Saidoo, senior director of information technology for the Chicago Bears. “It works with our current infrastructure, allows mobile staff members to stay connected while working between multiple offices and while on the road, provides a singular business continuity strategy, and enables us to build a strong platform with the capability to scale to the needs of our organization.”

From the front office, to the ticket center, to the training facility, to the crew down at Soldier Field, the comprehensive Mitel solution currently serves almost 150 users across the Bears organization and consists of:

• Mitel Communications Director extending Dynamic Extension and hotdesking capabilities to all users to ensure calls are never missed, regardless of the user’s location;
• Mitel Unified Communicator® (UC) Advanced providing users with a corporate directory that includes rich presence information, instant messaging, and visual voice mail, all within a single collaboration portal with key features also accessible on any mobile device. This allows people and information to connect efficiently and effectively to drive responsiveness and agility in today’s organizations;
• Mitel Contact Center Solutions providing ticket agents with visual queues to see how long people have been waiting enabling agents to better respond to fans more quickly and more efficiently, especially during times of high volume;
• Ethernet networking solution from Extreme Networks integrating with the Mitel products to provide a cost effective solution that meets the requirements of the strategic datacenter evolution.

The solution also gives the Chicago Bears the foundation to bring all voice applications into their planned VMware virtualized datacenter. This means simplified management of all applications and the ability to design a strong, integrated business continuity strategy.

“The Chicago Bears organization is a perfect example of how customers leverage the benefits of Mitel’s Freedom architecture,” Stephen Beamish, Mitel’s vice-president of corporate marketing and strategic alliances. “By deploying our solution, they have been able to leverage their existing infrastructure and extend the in-office experience anywhere to connect the entire organization. It also allows them to grow as the business needs evolve.”

Jason Saidoo will present the Chicago Bears solution during the Mitel Business Partner Conference General Session today taking place at the Westin Diplomat Resort & Spa in Hollywood, Florida. For more information on the conference visit: http://mitl.client.shareholder.com/releasedetail.cfm?ReleaseID=580963

Mitel UC Advanced on the BlackBerry PlayBook Tablet Showcased at BlackBerry’s ‘Mobile Office of the Future’ During BlackBerry World 2011

ORLANDO, Fla., May 4, 2011 (GLOBE NEWSWIRE) — BlackBerry World 2011 — Mitel (Nasdaq:MITL), a leading provider of unified communications (UC) software solutions, today announced it has extended its suite of unified communications capabilities to the BlackBerry® PlayBook™ tablet and will be demonstrating the capabilities at BlackBerry’s ‘Mobile Office of the Future’ at BlackBerry World 2011. Mitel is also planning continued integration with BlackBerry® Mobile Voice System 5 (BlackBerry MVS 5). Mitel will showcase its UC features for BlackBerry® smartphones and BlackBerry PlayBook at BlackBerry World 2011 in booth #301. For more information visit www.mitel.com/bbworld

Building on the Mitel Freedom architecture, Mitel has extended the Mitel Unified Communicator® (UC) Advanced mobile portal to the BlackBerry PlayBook, enabling a consistent, rich, end-user communication and collaboration experience. In addition to providing remote access to corporate communications capabilities such as managing presence, viewing corporate contacts, call history, and voice mail details, the application allows mobile workers to initiate phone calls directly on the BlackBerry PlayBook without interrupting their work flow. Using the employee’s BlackBerry smartphone, the application uses Mitel Mobility for BlackBerry MVS 5 to generate the call, leveraging the Wi-Fi® or cellular network.

“Mitel’s Freedom architecture makes it simple and seamless to deliver our business communications solutions to mobile users, regardless of location,” said Stephen Beamish, vice-president of corporate marketing and strategic partnerships at Mitel. “Our membership in the BlackBerry Alliance Program has allowed us to extend that further to the BlackBerry PlayBook tablet to provide unified communications applications to enhance the end user experience. We look forward to demonstrating the value Mitel brings to the BlackBerry PlayBook for the first time publically at the BlackBerry and Mitel booths.”

Mitel is extending the Mitel Mobility for BlackBerry MVS solution integration to include the recently released BlackBerry MVS 5.1. Today Mitel Mobility for BlackBerry MVS delivers advanced Mitel business communications applications directly to BlackBerry smartphones and enables voice-over-Wi-Fi calls. The combined solution enables IT managers to consolidate and simplify data center management by combining Mitel’s voice virtualization and BlackBerry applications into a single virtual environment, bridging the gap between fixed and wireless telephony applications.

Mitel Mobility for BlackBerry MVS offers unrestricted handoff between users’ devices, moving calls seamlessly to and from their desk phone, BlackBerry smartphone, home phone, or soft phone. With the integration of BlackBerry MVS 5.1 users can benefit from the automatic handoff between Wi-Fi and cellular networks to help further reduce roaming and wireless charges. The solution also enables BlackBerry smartphone users to take full advantage of Mitel business communications features without the need of a desk phone.

Mitel’s UC Advanced Mobile for Android Delivers Unique Location-Based Presence

OTTAWA, April 18, 2011 (GLOBE NEWSWIRE) — Mitel (Nasdaq:MITL), a leading provider of unified communications (UC) software solutions, today announced that Mitel Unified Communicator® (UC) Advanced software is now available for the Android mobile operating system, one of the most popular smartphone platforms in the world. Based on the Mitel Freedom architecture, this gives IT managers another tool to deal with the growing Bring-Your-Own-Device (BYOD) trend in which workers request bringing their personal mobile device into the workplace. IT now can deliver Mitel UC applications via mobile clients across Android-based as well as RIM-based smartphones, representing the majority of mobile devices in business environments.

For an interactive demo of UC Advanced software, visit http://www.ebiz.mitel.com/images/email/UCA/index.html

“The BYOD trend is a big challenge for companies that need to supply a consistent set of communications services across their entire workforce. For many IT departments trapped in a walled garden architecture, there is simply no solution at all,” said Stephen Beamish, vice president of marketing and business development at Mitel. “UC Advanced enables our customers to connect users across multiple platforms and devices no matter where they may be located. With the addition of a mobile client for Android, we further extend the in-office experience anywhere by leveraging the native capabilities of the device for enhanced UC application integration.”

Mitel UC Advanced provides desktop and mobile users a single interface to access all of their Mitel communications capabilities, including voice, video, instant messaging, conferencing, and presence. What makes the mobile client application unique is its location-based presence capabilities, enabling users to indicate how they would like to be contacted based on where they are. For example, using GPS location, a user may have a status of “mobile” when they are on the go in which they choose to have calls routed to their smartphone. When the user arrives at the office, their status can automatically change to “in the office” where they route calls to their deskphone, accept video calls, and instant messages.

Mitel UC Advanced Mobile for Android includes the following capabilities:

• Search the corporate directory and click-to-dial from corporate contact list to place calls through the corporate network.
• View missed, dialed, and received calls.
• Access to visual voicemail from office extension and manage messages by preference rather than sequence.
• Automatically update presence status and call routing preferences based on GPS, Bluetooth, or Wi-Fi network location, or based on time of day.

UC Advanced Mobile for Android is available to UC Advanced users from Google’s Android Market: https://market.android.com/details?id=com.mitel.unifiedcommunicator&feature=search_result

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Latest Enhancements to Mitel Unified Communicator Advanced Deliver Server Federation Capabilities and Enhanced Video Calling

OTTAWA, March 21, 2011 (GLOBE NEWSWIRE) — Mitel (Nasdaq:MITL), a leading provider of unified communications software solutions, today announced the general availability of the next version of the company’s Unified Communicator® (UC) Advanced software. New features in UC Advanced 4.0 include desktop video conferencing that makes face-to-face video as easy as a phone call. In addition, Mitel continues to build on its Freedom open architecture by introducing server federation within an organization. This frees IT departments currently trapped in a closed, single-vendor UC architecture, providing an opportunity to take a best-in-class approach to their communications infrastructure. Visit http://bit.ly/mitelucadvanced for more information on the new version of UC Advanced and http://bit.ly/mitelfreedom for details on the Mitel Freedom architecture.

A photo accompanying this release is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8899.

“UC Advanced 4.0 gives IT departments that have been trapped in a closed architecture an ability to move to the best-in-class, open architecture approach they’ve been wanting to implement,” said Mitel’s Stephen Beamish, vice-president of marketing and business development. “This ability to interoperate with the applications that IT is using today is what makes UC Advanced stand out from competing solutions. From the end user perspective, UC Advanced provides a single application in which they can initiate and escalate their communications from chat to voice calling and now to video calling. Providing that flexibility for both IT and the end user is exactly what the Mitel Freedom architecture is all about.”

UC Advanced has experienced rapid adoption with more than 100 percent year-over-year growth in license sales for its PC client, web and mobile portals, and UC Advanced Mobile for the period of Q3 FY’10 to Q3 FY’11.

Mitel Unified Communicator Advanced (release 4.0) includes the following new and enhanced capabilities:

• Server federation between UC Advanced and Microsoft® Office Communications Server (OCS) or IBM® Lotus® Sametime® is available within an organization to allow instant messaging presence, and point-to-point chat to all UC Advanced clients within the federated environment. This supports the large existing OCS base with support for Microsoft Lync™ users to be available in the next UC Advanced release.
• New UC Advanced Point-to-Point Video — From a single interface users can simply initiate and escalate a video call in the same way they would initiate a voice call, making it easier than ever to leverage video for stronger collaboration. Users can also use context-driven communication when placing a video call by attaching a subject and/or priority to encourage calls to be answered.
• UC Advanced to UC Advanced server peering — UC Server peering allows geographically dispersed UC Advanced servers to connect across the network with users having the same presence and communication capabilities — thereby increasing scalability by expanding the network of UC Advanced users to 10,000.
• Additional advancements to user interface and UC Advanced Mobile for BlackBerry® — A refreshed user interface allows for a more intuitive user experience and ease of navigation, making collaboration even simpler, while UC Advanced Mobile for BlackBerry updates provide greater flexibility for the mobile user with the provisioning of corporate locations and integration with native device contacts. UC Advanced Mobile for BlackBerry is available as a free download from BlackBerry App World: http://appworld.blackberry.com/webstore/content/12679

Union Institute & University, an accredited, private, not-for-profit, national university that offers personalized undergraduate, masters, and doctoral programs designed for the lifelong learner, has selected Mitel Unified Communicator Advanced to enhance staff communication and collaboration for its 200 employees across seven locations.

“Our staff is geographically dispersed across the United States and it was important to us to find a communications solution that enabled a better way to collaborate,” said Greg Thompson, Director, Department of Information Technology at Union Institute & University. “Mitel Unified Communicator Advanced plays a major role in this. Since we deployed the solution we have broken down the silos that existed between locations, enhanced our communication and collaboration among staff, and enabled quicker access to individuals across the organization. This allows us to serve our students and the community with the highest level of excellence.”

UC Advanced provides users with a single portal to their collaboration tools, including voice, video, presence, secure instant messaging, audio and web conferencing, document sharing, voice messaging and email, from a PC or mobile device. UC Advanced allows people and information to connect efficiently and effectively to drive responsiveness and agility in today’s organizations.

To view an interactive demo of Mitel Unified Communicator Advanced visit: http://www.ebiz.mitel.com/images/email/UCA/index.html

To experience Mitel’s Unified Communicator Advanced live and in person, call AmeriTel (800) 974-6637 and schedule your visit to their Mitel Solutions Center today!

(Calculated at 5 years = 100%; ($600,000-$500,000) x100% = $100,000

Total 1st Year Deduction:        $ 600,000

$500,000 + $100,000 = $600,000

Tax Savings Assuming Rate of 40%:  $240,000

($600,000 x 0.40 = $240,000)

1^st Year Net Cost after Tax Savings: $360,000

($600,000 – $240,000 = $360,000)

Non-Tax/Capital Lease – Continued

Tax Code Section 179 & Election to Expense Detail

The election, which is made on Form 4562, is for the tax year the property was placed in service or an amended return filed within the time prescribed by law. The total cost of property that may be expensed for any tax year cannot exceed the total amount of taxable income during the tax year. Section 179 property is property that you acquire by purchase for use in the active conduct of your business. To ensure property qualifies, reference Publication 946.

This expense deduction is provided for taxpayers (other than estates, trusts or certain non-corporate lessors) who elect to treat the cost of qualifying property as an expense rather than a capital expenditure. Under Section 179, equipment purchases, up to the amount approved for a given year, can be expensed (deducted from taxable income) if installed by December 31st. Non-Tax leases qualify for this deduction in their year of inception. Any excess above the expensed amount can be depreciated depending on the equipment type. Not all states follow federal law. Contact your tax advisor for further detail or visit www.irs.gov for specific detail.

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Tax

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