We can all agree the current pandemic has caused our needs to change. Companies have had to invest, much more money than budgeted for into areas that they would never have imagined needing in the beginning part of 2020. Employees need equipment to work remotely, security becomes an issue, productivity becomes a concern, and the issues seem to be never ending. Despite these issues being different for every company, one thing remains the same–COVID19 has had a serious impact on what we have been forced to spend money on and the way we do business today. And it’s more than just office technology we are talking about here. Things like sanitation products, personal safety gear –heck some have even had to purchase many more work trucks due to social distancing requirements! Companies have had to do this despite the fact that they may be bringing in much less revenue or even, in some cases, no revenue at all.
What if I told you that you could save about 20% on up to $1,040,000 in equipment purchases made right now for your business? Maybe your company needs a new truck (or even 10 new trucks!). Maybe you need some upgrades to the old technology in your office (think computers, a new server, a copy machine, new software, literally anything “technology”), or maybe you now have half of your staff working remotely and you need to get them the proper equipment to do so safely. How about some new-to-you heavy equipment or machinery (yes, even used equipment qualifies!)? More than 7 out of 10 business owners do not understand the HUGE financial impact that Section 179 could have on their business and affordability of purchases they are currently putting off. Does it always seem to be the “wrong timing” for that big purchase, even pre COVID19? You can get everything that you need to meet the challenges of this “new normal” right now and get a sizable tax benefit the next time you file. Have you been putting off purchases that your business needs today while you wait for an opportunity to present itself for savings tomorrow? Stop waiting while your business slowly suffocates(!), there is an easy way to create your own opportunity right now!
Now, I am no tax professional, that’s what you guys pay your CPAs, accountants, etc for, but let’s go over the basics of Section 179 so that you can decide if this is something that even makes sense for you to look at more closely. Let’s call it Section 179 in a nutshell.
This example was provided in a blog post titled “How to Get a Big Discount on Commercial Equipment Anytime” on LEAF Financial’s webpage back in October, 2020 and it really does a great job of simplifying this.
Here’s a simple example based on a common tax situation:
- Purchase Price: $50,000
- Total First Year Deduction: $50,000
- Tax Savings on Purchase (based on a typical 21% rate): $10,500
- Effective Cost of Equipment: $39,500
You’re even able to lease the equipment, if that makes the most sense for you, and still get the benefit on the entire amount while making monthly installments… now that can really help with the cash flow! To qualify for Section 179, assets must be purchased and put into service by December 31st of that tax year. Both new and used equipment can qualify, and you can even deduct the cost of qualifying software.
With everything that has been going on in our world today, the needs of needs our businesses are rapidly changing. Regarding the technology needs, I will get your employees connected and your data secure in the office, at home, in the company truck, or wherever their needs and their work takes them in order to ensure your team can be as productive as possible. To get in touch with us, please fill out the contact form or request a quote on our website today to begin a conversation about business technology solutions in Colorado.