Taking advantage of year-end tax savings to increase your assets and decrease your tax bill by thousands of dollars has never been easier. Two Volvo Construction VPs detail the American IRS Tax Code sections 179 and 168 to maximize your purchasing power.
For details, see the article on construction equipment guide.com or keep reading below.
- Maximum amount that can be deducted is $1 million.
- Maximum amount of equipment purchased (and take the full deduction) is $2.5 million.
- Bonus depreciation has been increased to 100 percent (up from 50 percent) of the cost of both new equipment and used equipment (must be new to you) obtained through an unrelated third party between Sept. 27, 2017, and Jan. 1, 2023.
- It’s also important to note that equipment must be used for business purposes more than 50 percent of the time to qualify for these deductions.
- Businesses with a net loss are still qualified to deduct the cost of new equipment and carry-forward the loss.