I am writing this while visiting Atlanta for the annual GlassBuild America trade show. If you are on the show floor and are looking to buy equipment, then don’t forget to take into account the potential tax savings that you can realize if you are able to place the equipment onto your shop floor before the end of the year.

The maximum Section 179 deduction for 2023 is set at $1,160,000, which is an $80k increase from last year. This is the largest deduction ever offered to businesses and should not be missed. Any U.S. company can deduct the full purchase price of all new and used qualifying equipment from their 2023 taxes, up to the limit. This can make an incredible difference in taxes paid, allowing companies to keep more of the dollars they earned for the year. So even if you are low on cash reserves and need financing to complete your purchase, Section 179 can impact your decision to buy now as opposed to waiting for the new year.

Crest Capital has a very useful Section 179 Tax Deduction Calculator, which can be used for evaluating the potential savings that your company can realize from Section 179 tax savings.

If you are thinking about buying new or used equipment for the factory, new software to enhance productivity, or new vehicles to replace less reliable ones, just remember, you must get these into action by December 31 so you can claim the deduction and save money.

The percentage savings can be dramatic. For example, type $1,000,000 into the Tax Deduction Calculator and you can see the tax savings of $350,000 bringing the net cost of the equipment down to $650,000.

On top of the Section 179 Tax Savings, your company may save additional dollars with a purchase of equipment that is on display at GlassBuild. This is because the exhibitors would much rather sell their display equipment as opposed to having to pay to ship it back to their factory where it will also take up space on their plant floor. By selling it to you, even at a discount, they save the cost of the return freight since this is typically paid for by the buyer.

So, as you make your way around the show floor this year, use the Section 179 trick to get your tax savings treat. Happy Halloween!

Leave a Reply

Your email address will not be published. Required fields are marked *