Buy industrial equipment (example: Forklift) before the end of the year, and Section 179 of the tax code may allow you to claim the full purchase price as a deductible business expense in 2023.
Section 179 applies to Southwest ToyotaLifts’s full range of machines, from forklifts to reach trucks, order pickers to THD High Capacity Lifts, all designed and built to handle the most demanding material handling projects. For more information, ask your tax advisor if Section 179 applies to your business and then contact Southwest ToyotaLift to schedule a demo and to see inventory.
In years past, when your business bought qualifying equipment, it typically wrote it off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example).
Now, while it’s true that this is better than no write-off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.
And that’s exactly what Section 179 does – it allows your business to write off the entire purchase price of qualifying equipment for the current tax year if it is acquired and installed during the same tax year, instead of the equipment cost being capitalized and depreciated over time. This has made a big difference for many companies (and the economy in general.) Businesses have used Section 179 to purchase needed equipment right now, instead of waiting. For most small businesses, the entire cost of qualifying equipment can be written-off on the 2023 tax return (up to $1,160,000).
Eligible equipment must be new-to-you; even used equipment that is new to your business qualifies!
Check out our qualified inventory.
Using a $1,200,000 equipment cost for a sample calculation shows how taking advantage of the Section 179 Deduction can significantly lower the true cost of the equipment purchased, financed or leased. In our example, $1,200,000 in equipment purchased has a true cost of $782,800. That’s $417,200 saved. Would you like an extra “400 grand-plus” this year on equipment you needed anyway?
In order to qualify for the Section 179 Deduction, the equipment must be purchased, financed or leased equipment and put into service by December 31 of this year!
Click on the calculator below to estimate your cash savings.