Did You Know You Can Deduct Your Entire 2020 Equipment Purchase Price?
Are you considering new or pre-owned material handling equipment?
Did You Know You Can Deduct Your Entire 2020 Equipment Purchase Price?
As we are entering the final few months of 2020, now is the perfect opportunity to refresh or expand your material handling fleets while taking full advantage of Section 179’s tax deduction.
What Is Section 179?
Section 179 of the IRS tax code is, essentially, an incentive by the U.S. government to encourage business owners to purchase equipment and invest in their businesses by allowing them to deduct the full purchase price of equipment, as well as, software that is either purchased outright or financed during the current tax year.
Tax Savings Example:
Cost of Equipment — $100,000
Assuming a Tax Bracket —25%
Section 179 Deduction — $100,000
Tax Savings on Purchase — $25,000
Lowered Cost of Equipment (after tax savings) — $75,000
THAT’S $25,000 ADDED BACK TO THE BOTTOM LINE!
How To Take Advantage:
• Contact our MIT team today to assist you in purchasing, financing, or leasing new or used material handling equipment that’s best suited to your application need and budget.
• Once you’ve made your selection, our material handling experts will get your equipment working for you before the December 31, 2020 deadline.
• Next, we suggest you contact your company’s financial advisors to see how you can use your equipment purchases on your 2020 taxes to take advantage of the Section 179 deduction to your maximum benefit. ( http://www.irs.gov/Form4562 )
• You can deduct purchases taking Sec. 179 depreciation up to $1,040,000. The spending cap for 2020 is $2,590,000. Any purchases over the $2,590,000 spending cap reduce the amount of Section 179 deduction allowable dollar for dollar.
Don’t Miss Your Chance to Save, Act Now!
Check out our Pre-Owned Inventory or request a quote before time runs out.
