We’re well into the start of the fourth quarter of 2018, and as the year’s end rapidly approaches, now is the time to be considering any end-of-year equipment purchases to take advantage of Section 179 tax benefits.
The 2017 Tax Cuts and Jobs Act changed Section 179 in some important ways, doubling the deduction cap for new equipment to $1 million, with a bonus depreciation up to 100 percent. This means many customers will be able to lower their business’ taxable gross income by up to $2 million if they purchased enough equipment during the year.
Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE of Bandit equipment from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
Also, Section 179 is only valid for equipment purchased and placed into service during the calendar year. As long as you’re new or used Bandit is officially in your fleet by December 31, 2018, it should be deductible for 2018 taxes. If you’re still considering a Bandit purchase this year, you should move fast. Simply placing an order isn’t enough, even if it’s paid in advance. You must have purchased or leased the equipment AND taken delivery to your fleet by the end of 2018 to receive the deduction.
Talk to your accountant or tax professional to see how these aggressive tax incentives can help you fill out your Bandit fleet—and build your bottom line.
Learn more about Section 179 deductions by visiting www.section179.org