With 2018 coming to a close, there isn’t much time left to upgrade your fleet to take advantage of a significant tax break. Section 179 was signed in December 2017, allowing businesses to increase deductions from equipment upgrades valued up to $1 million within a single calendar year.
This encourages investment toward long-term improvements – with qualifying leased or owned equipment – allowing the full purchase price to be deducted from your gross income; this differs from normal equipment depreciation. Additionally, you have the option to apply the tax break on each individual item or across all equipment, depending on which path proves to be the most financially sound for your company.
Cheat Sheet:
- 2018 Depreciation Limit = $1,000,000
- Outright purchases & financed purchases qualify.
- Machines, machine control, software & survey equipment all qualify.
- 2018 Spending Cap on Equipment Purchases = $2,500,000.
- Bonus Depreciation = 100%
Deductions only apply to equipment delivered before January 1, 2019.
Just an Example of What You Could Save
John Deere 470G Excavator $330,000*
Topcon X-53x 3D Excavator System
- GX-55 Control Display
- Dual GR-i3 GNSS Receiver/Antennas
- SL-100 Radio and Sitelink3D Subscription $56,615*
Topcon Grade Control Equipment
- HiPer V base and rover UHF
- FC-5000 Field Controller with Cradle and Pole
- Pocket 3D Field Software $37,212*
Total New Excavator System Cost $423,827
Section 179 and Bonus Depreciation Savings (Assumes 35% Tax Bracket) -$148,339
Actual Net Cost of Your New System $275,488
*These are not representative an actual quote or proposal. Please see your local Papé Machinery dealership for an official quote.
Time is running out so take advantage of this deduction today!
Papé does not offer any tax advice, and this information is provided simply as a suggested purchase savings method. Please consult your tax adviser on all Section 179 deduction and bonus depreciation details. Read more about the Section 179 deduction at http://www.section179.org
