Year End Savings - Take Full Advantage of Section 179

Posted by Diana Alves on Dec 12, 2023

The IRS Tax Code, specifically Section 179, offers a fantastic opportunity for businesses like yours to invest in growth and efficiency while benefiting from significant tax deductions. This is the perfect time to consider upgrading your property maintenance tools, including our top-selling Gutter Cleaning Systems, Window Solutions, High Dusting, Combustible Dust and Surface Cleaning.

In 2023, businesses buying $2,890,000 or less in eligible equipment can deduct up to $1,160,000 immediately, rather than spreading it over years. This helps save money on your overall expenses when you put the equipment to use by the year-end.

For example, if you buy a $200,000 equipment, instead of spreading its cost over its lifespan, you can deduct a significant part in the first year, thanks to Section 179. This reduces your taxable income, and hence, the taxes you pay.

After reaching the $2,890,000 limit, bonus depreciation comes in, allowing you to deduct a considerable part of an asset’s cost in the first year.

Starting in 2023, the bonus depreciation is changing:

80% in 2023
60% in 2024
40% in 2025
20% in 2026

So, if you're planning to put equipment into service this year, it's advisable to act now before the bonus depreciation decreases further.

Here's how Section 179 can work for you:

1. Increased Deduction Limit: In the 2023 tax year, Section 179 allows businesses to deduct up to $1,160,000 of the cost of qualifying equipment. By investing in our products, you can substantially reduce your taxable income.

2. Immediate Expense: Instead of spreading the cost of the leased equipment over several years (depreciation), businesses can deduct the full cost of the equipment in the year it's leased, thereby reducing the taxable income for that year. This can significantly reduce the immediate tax burden.

3. Preservation of Cash Flow: Leasing allows businesses to acquire necessary equipment without large upfront costs. They can spread the cost over the lease term and still take advantage of the Section 179 deduction, thus conserving cash for other operational needs.

4. Tax Savings: The immediate deduction provided by Section 179 can lead to substantial tax savings, as the deduction reduces the amount of income subject to tax.

5. Easy Application: Applying Section 179 to your equipment purchases is straightforward. Simply consult with your tax advisor to ensure that your acquisitions meet the requirements, and complete the necessary IRS forms when filing your taxes.

Don't miss out on this incredible opportunity to enhance your property maintenance operations, boost your productivity, and simultaneously reduce your tax liability. It's a win-win situation that can make a real impact on your business's financial health. Contact us now.

Disclaimer*:

The information provided is for general informational purposes only and should not be considered as tax advice or financial guidance. It is essential to consult with a qualified tax advisor or financial professional to determine the applicability of Section 179 or any tax incentives to your specific business situation. Clean Direct/ SkyVac does not provide tax or financial advice, and we recommend seeking professional consultation before making any tax-related decisions. Any actions taken based on the information provided in this text are at your discretion and risk.