So – you’d to take advantage of a tax break while getting ahead of fleet-planning all in one go?
We’ll show you how.
Get Your Trucks Before You Need Them
Beginning your fleet planning as soon as possible ensures you’ll be ready to meet the demands of the following quarters.
Since everyone looks to upgrade fleets around the same time, our production schedule gets packed pretty quickly.
This means that booking production of the trucks you need well in advance results in shorter wait times. Shorter wait times translate into greater preparedness on your part.
But… that’s not all…
By purchasing a truck before year end, your company can actually use the purchase price of the truck as a tax deduction. This deduction is called Section 179.
Section 179 Deduction
Section 179 of the IRS tax code allows you to deduct the full purchase price of qualifying equipment from your company’s gross income. This deduction benefits small businesses and encourages investments into the company.
Purchase or Lease?
While the Section 179 Deduction can be utilized with a purchase of a new or used vehicle, its benefits can be maximized through leasing or financing equipment. According to expert analysis of the deduction, “The obvious advantage to leasing or financing equipment and/or software and then taking the Section 179 Deduction is the fact that you can deduct the full amount of the equipment and/or software, without paying the full amount this year.”
Of course, Section 179 Deductions do have limits. For 2021, this deduction limit is $1,050,000. The other major stipulation with this deduction is that for it to be applied in the 2021 tax year, the equipment that is “purchased or financed must be placed into service between January 1, 2021 and December 31, 2021.”
There is also a spending cap set at $2,620,000 for equipment purchases this year. If your company spends more than that cap, “the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis.”
How to Use
Electing to use the Section 179 Deduction is as simple as filling out IRS form 4562 and attaching it to your company’s tax return. To note though, you need to have complete details of the equipment purchase transaction in order to properly fill out the form. This includes where you purchased the equipment from, the date it was purchased, and the date it was first put into service.
Waiting to order trucks jeopardizes timing of manufacturing and delivery while also causing you to miss out on significant tax savings.
Check out our current inventory here or reach out to us if you have any questions about saving big bucks for your company!
*All Section 179 Deduction information was sourced from Section179.org. Please consult your tax professional for how this may apply specifically to your equipment needs.