The end of the year is approaching quickly, and this means that it’s time to start thinking about your yearly taxes. In addition to gathering all of the relevant paperwork and documentation from your business’ expenses, wages and income, it’s a great time to maximize your deductions. If you’re thinking about buying some new equipment or machinery for your business in the coming months, it’s a good idea to bite the bullet on your purchase through a forklift dealer in Abilene, TX. Thanks to Section 179 of the tax code, you can deduct the full purchase price of qualifying equipment from your taxes.
Section 179 at glance
In essence, Section 179 allows businesses to deduct the full purchase price of qualifying equipment or software purchased during the tax year from that year’s tax filing. This aspect of the tax code is designed to incentivize businesses to purchase equipment that will help them grow and expand their business and spur growth in the economy. Section 179 has allowed many small businesses to purchase equipment that they might not have been able to afford otherwise. Section 179 covers many different business purchases, including equipment and machinery, tangible personal property that’s used for business, business vehicles weighing more than 6,000 pounds, computers, computer software, office furniture and office equipment.
How Section 179 is different
While businesses have been able to deduct a portion of qualifying purchases from taxes for a long time, Section 179 is different because it allows you to deduct the full amount of your purchase all at one. In previous years, businesses could deduct a portion of the purchase over several years based on the depreciation of the item, but this still limited small businesses that needed a larger deduction in order to budget a big purchase. Now, instead of deducting a small amount for depreciation over the course of several years, businesses simply write of the entire purchase the first year and then don’t deduct any portion of the purchase in the following tax years.
However, the most important thing to remember about Section 179 is that it isn’t necessarily here to stay. This section of the tax code can change every year with little notice, so you never know when your business might lose this great tax incentive. With that in mind, it’s important to take advantage of Section 179 while you still can. By making a purchase from a forklift dealer in Abilene, TX by the end of the year, you can maximize your investment in your business and minimize your tax bill when you file.
Contact a forklift dealer in Abilene, TX
What are you waiting for? Make the most of Section 179 by purchasing equipment for your business from V-Bar Equipment Company. Since 1993, we’ve been proudly serving businesses in the community with equipment sales, rentals, services and training so that you can improve the productivity, efficiency, capacity and safety of your workplace. If you want to find out more about all of the material handling equipment we have in stock, or if you’re interested in our services, just give us a call today for more information.
Categorised in: Forklift Dealer
This post was written by Writer