Anyone who purchases construction equipment knows that cranes are an expensive investment. Whether large or small, companies and contractors have to logistically think about their financing options when purchasing equipment. Getting familiar with the advantages of the Section 179 benefits that are associated with the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) can save you hundreds of thousand of dollars. So, what does this bonus depreciation do and how can it be applied to you?
Section 179 Construction Equipment Deals
For the year 2017, the deduction limit for new equipment is $510,000. This means that a company can deduct the full costs of qualifying new equipment from their 2017 taxes, up to $510,000. Phaseout for the deduction starts at $2.03 million in equipment purchases and is matched dollar-for-dollar. If you plan on taking advantage of these Section 179 benefits, you will need to have your equipment bought and in service no later than December 31st, 2017.
Another benefit to take advantage of is the bonus depreciation of the qualifying equipment. Under the Section 179 benefits, new or used equipment that is purchased and serviced in 2017 will be depreciated up to 50% of its original cost. The bonus depreciation is now extended through 2019, with it phasing out at 40% through all of 2018 and 30% throughout 2019.
RTL Equipment Cranes
There is never a better time to take advantage of the Section 179 tax benefits as the 2017 year wraps up. With the strong possibility of corporate tax rates being reduced by up to 15% in coming years, it should be everyone’s goal to reduce taxable income in 2017 by as much as they can. We have a variety of new and used cranes from Terex, Kobelco, Manitowoc, Liebherr, and others. Whether you need crawler cranes, truck cranes, wheel loaders, or other types of equipment, we are your trusted Midwest construction equipment dealer. If you are ever having any issues or questions about our equipment, feel free to contact our service team for details!