It’s That Time Again…
Make Section 179 Work for You and Save Thousands by Financing Equipment
Tax season might feel like a long way off, but there are many reasons to think about your taxes now and what you can do before January 1to reduce the taxes you’ll owe in April. One of the things you can do to lower the taxes your gas station or convenience store will have to pay is finance new equipment. This is thanks to Section 179 of the tax code, which allows business owners to deduct up to $2 million of money they spent on equipment for their business from their taxable income.
The idea behind the tax deduction is to encourage business owners to spend money on their businesses so they can maintain and even grow their operations, which is why you should take advantage of the tax deduction and start looking for equipment to buy or finance before the end of the year.
Financing is a great option because it means you don’t have to dump a chunk of cash right away in order to get the equipment you need. You can also deduct the entire cost of the equipment from your taxes, provided it cost $2 million or less. By making payments on the equipment, rather than paying for it outright, you get to keep much of your cash free to make other necessary business purchases.
While Section 179 applies to all business owners, there could be other deductions and/or regulations for your industry, depending on your geographical area. Always be sure to have an accountant look over your tax forms before you turn them in. They can save you thousands by making sure you take all the deductions you can, and that all your forms are filled out properly.
State Bank and Trust Company d/b/a Patriot Capital does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.