2018 Tax Incentives for Fleets and Contractors

Now that 2018 is coming to an end and tax time is just around the corner, let’s talk about tax deductions. Before you know it 2019 will be upon us and it’s not too late to take advantage of the Section 179 tax deduction. This deduction is good on new and used equipment financed/purchased and put into service by 12/31/2018.

What is the Section 179 Deduction?

Basically, the Section 179 deduction is an incentive created by the U.S. Government for small businesses to invest in themselves and help lower operating costs. It allows businesses to add the needed equipment to improve operations and increase revenue and then deduct the full purchase price, of qualifying equipment, from your gross income.

Even better, the deduction limit for Section 179 has increased from last year to $1,000,000 for 2018 and beyond, as well as the limit on the equipment purchases has increased to $2.5 Million. There is also a bonus depreciation of 100% and is retroactive to 9/27/2017 and good through 2022. This bonus depreciation now includes used equipment as well.

Here is an example of how Section 179 works:

sample image from www.section179.org

To find out all the ins and outs of Section 179 and the answers to all your questions, visit the official website at www.section179.org. There is also a free calculator to give you an estimate of how much money you can save on your purchases. See the handy Section 179 Calculator that's fully updated for 2018.

Keep in mind the Section 179 Deduction can be applied to purchases on equipment such as the Service Truck Bodies from Fleetwest. The heavy duty steel constructed Load'N'Go units are available in roll top, fixed top and open bed configurations. To see the complete Fleetwest Line visit our website at www.Fleetwest.net and get a quote today.