It’s the Most Wonderful Time of The Year… To Buy Equipment
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accelerated depreciation and tax deductions on qualifying business purchases. Section 179 allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. In other words, buy a sweeper today and get a tax break in April 2022. With the current state of equipment availability — manufacturers experiencing low inventory —it’s important to prepare now for end-of-year purchases and buy in time to be eligible for 2021 tax deductions. Qualifying for Section 179 means the equipment must also be used in 2021. SECTION 179 BENEFITS
If purchasing equipment (like sweepers and trucks), most businesses can benefit from Section 179. Of
s kids, we tried to be really
course, there are limitations
good all year long so
and exceptions, so be sure
that the big guy would bring
to consult an accountant or
us something shiny, new, and
tax advisor. To get an idea
fun at the end of December.
of how your business can
As adults, however, we’re not
potentially benefit, here’s a
always so well behaved; we
breakdown of the Section
need to buy our own toys
179 allowances for 2021:
before the calendar flips. We
4 Deduction Limit =
also need to take advantage
$1,050,000 (up from
of grown-up things like tax
$1,040,000 in 2020)
breaks.
4 Spending Cap =
At this time of year, Oakmont
$2,620,000 (up from
Capital Services encourages our customers to get
$2,590,000 in 2020)
pre-approved for equipment financing ahead of
4 Bonus Depreciation = 100%
any year-end purchases. We also want to ensure our
Let’s do the math to show what this looks like in
customers take advantage of Section 179.
reality:
WHAT IS SECTION 179?
4 New Sweeper Cost: $100,000
Section 179 (part of the IRS tax code) was created to
4 Tax Bracket: 21%
encourage small businesses to grow by providing
4 Section 179 Deduction: $100,000 continued on page 22
2 0 NORTH AMERIC AN S WE E P E R D EC EM BER 2021
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