GET SMART. GET JOHN DEERE SMARTGRADE. IN STOCK!
Upgrade your fleet and your jobsite today with John Deere Smartgrade machines. Smartgrade enabled wheel loaders, excavators, dozers, and compact track loaders come with powerful tools like jobsite automation, object intelligence and grade automation, to name a few. Smartgrade technology is not just technology for for its own sake, but meaningful, powerful tools that can make even the most seasoned operator more efficient. Now at Coastline Equipment we have Smartgrade machines in stock and ready for delivery to help hard working contractors make the most of the jobs and Section 179 tax benefits.
Capitalize on Section 179 Savings
Deduct new and used Equipment Purchases
This deduction is good on new and used equipment, with a write-off limit of $1,040,000. To take the deduction for tax year 2020, the equipment must be financed or purchased and put into service between January 1, 2022 and the end of the day on December 31, 2022.
$2,095,000 is the maximum amount that can be spent on equipment before the Section 179 Deduction that is available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true “small business tax incentive” (because larger businesses that spend more than $3,630,000 on equipment won’t get the deduction.)
100% Bonus Depreciation
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used equipment.
Write of Maintenance
Regularly scheduled, routine maintenance does not have to be capitalized. Under Internal Revenue Service (IRS) Reg. 1.263(a)-3, you can expense routine maintenance on equipment to keep it in "ordinarily efficient operating condition." Routine maintenance can be performed at any time during a piece of equipment's useful life, but in order to be considered routine, you should reasonably expect that the activity will be performed more than once during the life of the equipment.
Trading in Equipment can help you save.
Trading in a machine has certain tax advantages over selling it. "Let's say you buy a 544 P-Tier Wheel Loader for $200,000, when you purchase the machine, you take an expense deduction and write off the cost of the machine. When you sell it for $95,000 three years later, you will incur a taxable gain. If you take the same 544 P-Tier Wheel Loader and trade it in toward the new one, the tax basis on the new machine is reduced, and there is no taxable gain to pay."
Considerations when using Section 179
Section 179’s “More Than 50 Percent Business-Use” Requirement
The equipment, vehicle(s), and/or software must be used for business purposes more than 50% of the time to qualify for the Section 179 Deduction. Simply multiply the cost of the equipment, vehicle(s), and/or software by the percentage of business-use to arrive at the monetary amount eligible for Section 179.
Consult Your Tax Professional
Coastline Equipment is happy to share high-level information regarding federal tax incentives for businesses. However when making capital purchases to maximize tax incentives, please be sure to consult your tax professionals to ensure proper use of the tax programs available for new and used equipment purchases.