Section 179 Deductions
2023 is quickly coming to a close, and now is the time to start taking advantage of the Section 179 Tax Deduction!
Have you considered all your deductions and purchased for 2023? Are you a new business owner? Have you talked to your account about it? The IRS actually sets this up to want to help you as a business to make sure you are getting everything back you can on your equipment purchases. This deduction allows our customers with their own landscaping, construction, and agricultural businesses to benefit from tax incentives while investing in business assets.
Through the Section 179 tax deduction, business owners are able to write off 100% of the purchase price of qualifying new and used equipment in the year of its purchase. This year, the incentive is applicable to equipment that is financed or purchased and put into use by the end of the day on Dec. 31, 2023. That is any equipment for your business, which could be NEW or USED!
The 2023 guidelines allow expenses up to $1,160,000 to be written off, whereas asset expenses over $2,890,000 will begin to phase out dollar-for-dollar. To allow small to medium-sized businesses to benefit the most from this incentive, expenses exceeding $3,780,000 are not applicable for a deduction. (Check out section179.org for more information)
Additionally, equipment must be used for business purposes over 50% of the time to qualify for a Section 179 deduction. Your monetary amount of eligibility is found by multiplying the cost of equipment by the business-use percentage. Please note that not all equipment will qualify for this deduction. Units that are excluded from this deduction include but are not limited to: UTVs, Lawnmowers, sport vehicles, etc.
Especially this year with the shortages in equipment, now is the time to really start looking at making those end of the year tax purchases! Give us a call or fill out the form to get more information. In the meantime, if you don’t know much about Section 179, or you are new businesses looking to take advantage of this, give us a call or request a quote here. This is by no means any legal or accounting advice. You should always check with your accountant before making any tax decisions.
Here is an updated example of Section 179 at work during the 2022 tax year:
Equipment Costs: | $89,250.00 |
Section 179 Deduction: | $89,250.00 |
Bonus Depreciation Deduction (100% of 2022): | $0.00 |
Total First Year Deduction: | $89,250.00 |
Cash Savings on Your Purchase | $31,237.50 |
Lowered Cost of Equipment (After Tax Savings): | $58,012.50 |
(This example is based on assuming a tax bracket of 35%)
For more information on Section 179, visit Section179.org.
Beverage Tractor & Equipment is not a source for tax or legal advice. Consult your tax advisor or legal professional for complete details on Section 179.
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Currently, we have a wide variety of qualifying units in stock at all three of our locations. For businesses that are interested in taking advantage of the Section 179 deduction with a new equipment purchase, we help our customers save big by offering competitive pricing, package deals, and financing.
Check out our current specials or request a quote below to see how you can get the best deal on your Section 179 purchase.