The IRS wants you to succeed almost as much as we do.
Section 179 tax savings can help you purchase the high-quality Hyster-Yale® material handling equipment your business needs. The Internal Revenue Service (IRS) created Section 179 so that small businesses could have extra income to buy the equipment and technology that would help them grow at a faster rate. Usually, purchasing your dream excavator results in a percentage of its depreciated cost being deducted from your income over a longer time period. However, with Section 179, the full purchase price can be deducted from your gross income
DO YOU QUALIFY?
It really doesn’t take much to qualify for Section 179. Your equipment must be purchased and in use by December 31, 2023, and it must be used for your small business at least 50% of the time. This is a “New to You” tax code, meaning that it can be applied when you purchase either new or used equipment.
HOW MUCH CAN YOU SAVE?
For 2023, the Section 179 deduction limit is $1.16 million with a total equipment spending limit of $2.89 million. Once the spending limit is reached, “the deduction reduces dollar-for-dollar until it disappears.” That means that Section 179 no longer applies if you spend $4.05 million or more on compact equipment
WHAT ARE THE PROS AND CONS?
This IRS tax code can positively impact your small business’ profitability but less positively affect your federal income tax rates.
“It has the advantage of freeing up cash a lot quicker because you’re not waiting over a period of time to depreciate that asset over years,” says Jeffrey Levine, CPA and Tax Expert for Buckingham Strategic Wealth. “The downside to it, though, is that by taking a significant 179 deduction, you may end up depreciating too much and push yourself into lower brackets.”
HOW CAN WE HELP YOU?
Long lead times have been a major issue over the past few years, but great news! We currently have multiple pneumatic tire forklifts in stock. Come see us before December 31, 2023 to save more on your next purchase with Section 179 tax savings. Learn more about this limited-time opportunity by reaching out to our sales team.