How to Save $20,825 on Your SLT Purchase
Take advantage of this government tax incentive set to expire Dec 31, 2013.
Business owners who acquire equipment for their business: machinery, trucks, computers, and other tangible goods, usually prefer to deduct the cost in a single tax year, rather than a little at at time over a number of years. The deduction is known by its section in the tax code, a Section 179 deduction.
Section 179 Tax Deductions Re-Signed and Increased!
In 2009 Section 179 of the IRS tax code allowed business owners to write off vehicle purchases and leases as tax deductions up to a maximum of $250,000.
These expired Dec 31, 2012, however Thanks to the American Taxpayer Relief Act of 2012, the section 179 deduction was recently signed, allowing the deductions for 2013 to be increased to $2,000,000 as well as restoring the 50% Bonus Depreciation for 2013.
Certain conditions do apply. So talk with your tax professional. Here is a summary:
Under section 179, businesses that spend less than $2,500,000 a year on qualified equipment, may write-off up to $500,000 in 2013. The rules are designed for small companies, so the $500,000 deduction phases out when a business purchases more than $2,500,000 in 2013. Companies cannot write off more than their taxable income.
One quick note: You can carry section 179 tax deductions forward if your taxable income is lower than the total tax deduction. We suggest you speak with your CPA to see exactly how much money you can save in 2012 using the section 179 tax reduction strategy.
Here is one example:
Cost of Equipment $59,500
Section 179 deduction $59,500
Cash savings with 35% tax bracket $20,825
Adjusted cost of equipment $38,675
This saves you $20,825 this year!
Please note: This example assumes a federal tax bracket of 35%. Many states have income taxes as well. For example, Georgia has a 6% state income tax. This means that a profitable company could face a total income tax of 41%. So your actual tax savings could be greater than the example above.
This incentive is set to expire Dec 31, 2013. Acquire your equipment now, don’t put it off until 2014, and save yourself a pile of money.
Please, always talk to your accountant for tax advice.
Here is where financial planning really pays. You can purchase the truck before Dec 31, 2013 and take the right off in 2013 tax year saving you $20,000+ in taxes.
Order your trucks for 2014 right now. Do not delay. This can help you get the equipment you need to grow your business without hurting cash flow in your slower winter months.
Your SLT sales person can see if your company would qualify for this type of program.
Call Super Lawn Trucks for year- end specials on new (and used) Super Lawn Trucks.