With the end of 2018 right around the corner, it’s time to start thinking about year-end tax savings.
For hardwood floor contractors, Section 179 can create an opportunity for huge savings. This deduction can help you invest in much needed equipment for your business while saving on your taxes. Throughout Fall 2018, we’re running a special on the Lagler Hummel (only $5,799) and a Lagler Hummel and Lagler Flip package (only $7,895). Click here to learn more about these deals and take advantage of them before the year ends!
Section 179 allows small businesses to deduct the entire purchase price of qualifying equipment for the tax year in which it was bought, rather than writing off the depreciation of the equipment over the course of several years. The equipment, vehicle(s), and/or software must be used for business purposes more than 50% of the time to qualify for the Section 179 Deduction.
There are some limits for the amount deducted ($1,000,000 for 2018), and limits to the total amount that can be spent on equipment during the tax year (this limit is $2,500,000 in 2018).
You can finance your purchase while taking advantage of the tax deduction on the full purchase price. This can really help out with your cash flow and can even give you a profit in certain cases, such as when you decide to lease a machine but claim the full deduction for that tax year.
To take the deduction for tax year 2018, the equipment must be financed or purchased and put into service between January 1, 2018 and the end of the day on December 31, 2018. Click here for a full list of qualifying equipment.
This gives you a great incentive and an amazing opportunity to invest in hardwood floor equipment, such as a new or used sander, buffer, or edger.
Throughout Fall 2018, we’re running a special on the Lagler Hummel (only $5,799) and a Lagler Hummel and Lagler Flip package (only $7,895). Click here to learn more about these deals and take advantage of them before the year ends and pile your savings on top of more savings!
Please note that this post is intended to offer ideas and opportunities, not specific tax advice. Please consult with your tax professional(s) concerning your specific situation.