12/12/2013 (press release: utilityfleet)
All equipment at Utility Fleet Sales qualifies for a 100% tax write-off for 2013. Customers purchasing, and placing into service, bucket trucks, digger derricks, and related equipment before December 31, 2013 are eligible for these tax benefits. Beginning January 1, 2014, new laws prevent customers from taking advantage of the significant tax savings. Utility Fleet has over 300 new and remanufactured units on ground and available for immediate, nation-wide delivery before year end.
Section 179 of the US Internal Revenue Code currently allows businesses to write off 100% of the cost of equipment (up to $500,000) as an expense on their income taxes, as opposed to depreciating the equipment over several years. Companies wishing to finance equipment are still eligible for the deduction and may write off equipment costs up to $500,000 without paying the full amount this year. In addition to the first-year write off, all new equipment qualifies for a 50% bonus first-year depreciation deduction, which allows taxpayers to write off an additional one half of the remaining depreciable amount above $500,000.
These laws, however, are changing at the end of this year. Beginning January 1, 2014, the Section 179 deduction is scheduled to be reduced to only $25,000. Additionally, bonus depreciation is scheduled to expire altogether after December 31, 2013.
2013 Tax Savings Example:
Equipment Purchased:::: $650,000
First Year Write Off (max):::: $500,000
50% Bonus 1st Year Depreciation (150K x 50%):::: $75,000
Normal 1st Year Depreciation (75K x 20%)::::: $15,000
Total 1st Year Deduction (500K+75K+15K):::: $590,000
Tax Savings (590K x 36% tax rate):::: $212,400
Equipment Cost After Savings (650K-Tax Savings):::: $437,600
The current laws could increase both the cash flow and the growth of many businesses, by adding cost-effective equipment solutions into service. Contact Utility Fleet Sales to take advantage of these tax benefits when you buy or lease bucket trucks, digger derricks, and related equipment, before the new laws go into effect beginning January 2014.
To learn more about Section 179, visit www.Section179.org.
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