As the end of the year approaches, hardwood floor contractors have the opportunity to take advantage of tax breaks by purchasing new equipment for their businesses. These tax breaks can provide significant savings, allowing contractors to invest in their businesses and improve their services.
One tax break that hardwood floor contractors should be aware of is the Section 179 deduction. This provision allows businesses to deduct the full purchase price of qualifying equipment and software from their taxable income during the tax year it was purchased. This means that instead of depreciating the cost of the equipment over several years, contractors can claim the entire cost as a deduction in the current year. This deduction also applies to financed equipment.
Pair this with our available financing options and you have a powerful way to boost your business going into the new year. We are offering no interest for the first 6 months when you finance a machine!*
Another tax break that may be available to hardwood floor contractors is the bonus depreciation deduction. Bonus depreciation is a tax incentive that allows a business to immediately deduct a large percentage of the purchase price of eligible assets, such as hardwood flooring equipment, rather than write them off over the “useful life” of that asset.
As of 2022, you can take advantage of 100% bonus depreciation on qualifying purchases. This can provide significant tax savings and can help contractors to offset the cost of new equipment. This is your last year to take advantage of 100% bonus depreciation – the 100% bonus depreciation will phase out after 2022, with qualifying property getting an 80% bonus deduction starting in 2023 and even less in the years following. You can use bonus depreciation in conjunction with Section 179.
Click here to learn more about Section 179 and bonus depreciation. Make sure to consult a tax professional to make sure that your purchases qualify for these tax breaks and to find out which type of deduction is best for your business.
We’ve compiled a list of the best equipment to invest in before the year is over. Lock in your purchase now before prices increase next year:
- Galaxy 2000 Sander – The Galaxy Super 2000 sander is a unique combination of two machines in one – it’s a belt sander and drum sander in one tool. The machine’s dual functionality gives you the freedom to choose between using an aggressive sander on rough surfaces or a precise sander for delicate work.
- Galaxy Seirios Sander – The Galaxy Seirios Sanders features an innovative design that increases the head cutting pressure by 15-20%. This makes for a flatter finish, and also increases the cutting speed.
- American Sanders Legend – This machine features a high-performance motor that delivers fast and efficient sanding. The Legend also features a check valve connector which prevents dust release when the dust bag is disconnected, and an optional adjustable handle that makes it easy to set it up to operate comfortably. Overall, the American Sanders Legend offers a combination of power, durability, and versatility that make it an excellent choice for hardwood floor contractors.
- American Sanders Gym Vacuum DCS – The American Sanders Gym Vac offers efficient, high-volume dust collection for a gym sanding rider setup, eliminating the need for zipper bags. This allows for quick trash bag changeover, longer runtimes, and eliminates the need to handle the dust twice. It also frees up staff to tackle other tasks, making it a valuable tool for any gym flooring project. Say goodbye to messy zipper bags with the American Sanders Gym Vac DCS! Click here to watch our video about this amazing product.
- CFS American 12 Gym Floor Rider Package – Level up your gym floor business with this gym floor rider package. Get your jobs done in half the time! Includes a 3ph City Floor Rider cart, 2ea Clarke American 12in Drum sanders with 10HP 3ph motors. We also offer a CFS BD 12 Gym Floor Rider package, which includes 2 ea Galaxy 12in Belt/Drum sanders with 10HP 3ph motors. Both packages also include extended handle tubes and control rods, dual tow bar, 250 lft cable 10/4, all 3ph hubble plugs and connectors.
Overall, purchasing new equipment can be a great investment for hardwood floor contractors, and the end of the year is the perfect time to take advantage of tax breaks and save money on these purchases. By carefully planning their equipment purchases and taking advantage of available tax breaks, contractors can improve their businesses and better serve their customers.
If you’re interested in our financing options, call us at (800) 737-1786.
*Financing provided through Synchrony Bank. On-time minimum monthly payments must be made in order to qualify for deferred interest offer. Terms and conditions apply.
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.