As a business owner, there are many things likely going through your mind at any given time. From finding ways to improve morale among employees to trying to attract new customers to your business, there is always room for improvement, and thinking of solutions and advancements probably consumes a pretty significant portion of your time.
Another area that businesses are always seeking to improve is profitability. You can do this through marketing, distribution and even by taking full advantage of provisions in the tax code. As a business owner, there are many different deductions that might apply to you. One such deduction is the Section 179 deduction. It can be easy to get confused when you are reading the tax code, but once you understand the law, you will be better able to make the most of your deductions and savings.
The basics of Section 179
Section 179 is a commonly misunderstood deduction, but it’s actually not as complicated as you may think. The basic concept of the section is that businesses can deduct the entire cost of qualifying pieces of equipment that they purchased during a given tax year. This deduction applies to both bought and leased equipment, and you can deduct the full purchase price of forklift parts in Abilene, TX and other equipment from your gross income. This deduction can benefit businesses of any size, but it is geared towards small to medium-sized businesses, as it caps off after about $500,000 and can only be applied if the business spent less than $2 million on equipment during that tax year.
Knowing when to use Section 179
Even if you know what a specific tax section says, it can still be a challenge to determine whether you actually qualify for it and how to take advantage of the deduction. Thankfully, there are some clear guidelines about Section 179 that businesses can follow to ensure that they are getting the most out of this deduction. All businesses that buy, finance or lease any new or used equipment with a total purchase price of less than $2 million qualify for the Section 179 deduction. This can be used for things like vehicles, or even software in some cases. As long as the item was purchased during the 2017 tax year, you should be able to apply the Section 179 credit on next year’s tax returns.
Make a tax-deductible purchase of forklift parts in Abilene, TX
If you are thinking about buying new or used equipment or forklift parts in Abilene, TX in the near future, what are you waiting for? Make sure to make your purchase before the end of the year so that you qualify for the Section 179 deduction. At V-Bar Equipment Company, we carry the finest equipment available so that you can get the most out of your equipment purchase. In addition to our quality inventory, we also offer repair and maintenance services that will keep your forklifts and other equipment in great condition. Find out more by giving us a call today.
Categorised in: Forklift Parts
This post was written by Writer