Now that 2018 is only a few weeks away from coming to an end, thoughts of taxes will start coming to mind. As a business owner, one specific factor that you may want to consider is the Section 179 Tax Credit, which essentially supports small- and medium-sized businesses to encourage them to invest in themselves.
How the Section 179 Tax Credit Works
Simply stated, if you buy or lease a piece of qualifying equipment, you can deduct the full price from your gross income. The equipment must have been purchased during the 2018 calendar year to be eligible for the credit within tax documents that are submitted early next year.
Because the tax credit is intended to support small- and medium-sized businesses, the expense limit for any particular piece of equipment is $2.5 million. The deduction will be reduced if the value of the product is higher than that, and businesses that purchase equipment that costs more than $3.5 million won’t be eligible for the Section 179 Tax Credit at all.
However, all businesses that purchase, lease, or finance new or used equipment qualify as long as they meet specific eligibility requirements.
As long as it’s at least partially for business use, equipment that could be eligible for the tax credit includes:
• Tangible personal property
• Certain vehicles
• Some software
• Office furniture and equipment
• Property attached to the building, such as large manufacturing tools
• Some improvements to buildings, such as repairs to the HVAC system and the addition of security systems.
KM International’s Line of Road Maintenance Equipment May Count!
All this means that if you purchased an asphalt recycler, hotbox reclaimer, or crack maintenance equipment from KM International this year, you’re likely eligible for that Section 179 Tax Credit. Talk with your tax adviser to learn more.
In the meantime, visit our website to explore our line of asphalt maintenance equipment, and contact us at 810-688-1234 if you need more information about our products.