You could qualify for a
LARGE TAX DEDUCTION
on your next commercial vehicle from Joe Basil Chevrolet.
At Joe Basil Chevrolet, we are committed to treating each and every customer that walks through the door like family. In 2018 our dealership was recognized by Chevrolet for the 10th consecutive year as Dealer of the Year based on sales and customer satisfaction. The BBB Rating System Overview has rated Joe Basil Chevrolet an ‘A’ in business evaluation since 1978. Year after year, The Joe Basil Family puts customers first! We specialize in Work Trucks and are proud to provide a large selection to our customers. With year-end approaching quickly, we want to highlight the benefits of Section 179 to our customers. Call us today!
is Section 179?
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the full purchase price from your gross income. It's an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
All businesses that purchase, finance, and/or lease less than $4,050,000 in new or used business equipment during tax year 2023 should qualify for the Section 179 Deduction. Also, to qualify for the Section 179 Deduction, the equipment purchased or financed must be placed into service between January 1, 2023 and December 31, 2023.
Section 179 does come with limits – there are caps to the total amount written off ($1,160,000 for 2023), and limits to the total amount of the equipment purchased ($2,890,000 in 2023). The deduction begins to phase out dollar-for-dollar after $2,890,000 is spent by a given business, so this makes it a true small and medium-sized business deduction.
does it work?
When your business buys certain items of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off maybe $10,000 a year for five years. Section 179 allows business owners to write off the entire equipment purchase price for the year they buy it.
Section 179 can provide you with significant tax relief for the 2023 tax year, but equipment and software must be financed and in place by midnight December 31, 2023.
2023 SECTION 179 SAMPLE CALCULATION
Section 179 Deduction:
Deduction Maximum: $1,160,000
80% Bonus First Year Depreciation:
Phased reduction to 80% via 'Tax Cuts and Jobs Act'
Normal First Year Depreciation:
20% in each of 5yrs on remaining amount
Total First Year Deduction:
35% tax rate
Equipment Cost after Tax:
Assuming a 35% tax bracket