As an independent hardwood floor contractor, filing your taxes is a painful process. Every year, Uncle Sam takes a healthy chunk out of your income.
Wouldn’t it be nice to invest some of that money back into your business instead of sending it to the government, who ends up wasting it most of the time?
A tax code item known as Section 179 allows you to do exactly that. Purchase equipment for your business before year’s end and you can reduce your 2014 tax bill by the full cost of the equipment (up to $500,000).
Section 179 allows small business owners to deduct the full price of equipment purchased for their businesses. Up to $500,000 can be depreciated, i.e. written off, this year’s gross income for new and used equipment purchased and put into use during 2014.
This means that machinery like sanders, buffers, and auto scrubbers would qualify for deductions on your 2014 taxes if purchased and put into use before December 31 of this year.
Vehicles with a gross weight in excess of 6,000 pounds that are used for business purposes also qualify for Section 179 deductions.
When leasing machinery or equipment for your business, Section 179 can actually spell profits. How is this? Because the amount you deduct will exceed your cash outlay for 2014 when you combine a proper Equipment Lease with a full Section 179 deduction. Said another way, you can deduct the full price of the equipment (up to $500,000) this year even if you haven’t actually paid that amount yet.
If you were on the fence about buying new equipment, you’ll find that it’s a good idea to do it before year’s end to cash in on this opportunity. Check out the Philly Floor Store’s selection of hardwood floor machinery and take advantage of Section 179 before it’s too late.
Please note, this post is intended to offer ideas and opportunities, not specific tax advice. Please consult with your tax professional(s) concerning your specific situation. Click here to read more about Section 179.
For more information, call the Philly Floor Store at (610) 940-5757 or email us at firstname.lastname@example.org.