How 2023 changes to Section 179 impact your bottom line

By Equipter. 

Understand tax code changes to help your equipment purchase planning and ensure your money goes further when investing in company equipment. 

U.S. tax regulations are constantly changing, and as a business owner, it is important to understand how they affect your equipment purchases. Equipter explores changes to Section 179 to show you the implications of these tax provisions, and how investing in the proper equipment through strategic financial decisions can significantly impact the bottom line of your roofing business. 

In the United States, Section 179 is a part of the tax code that allows businesses to deduct the purchase price of qualifying pieces of equipment during a tax year, encouraging businesses to invest in themselves with tax incentives and grow their business. In 2023, the total equipment purchase limit was raised to $2.89M, up from $2.7M in 2022. 

However, bonus depreciation, which generally kicks in after the Section 179 cap has been met for businesses, will phase down beginning in 2023. In 2023, only 80% of the cost of a new piece of equipment can be immediately depreciated with the rest being depreciated over the next seven years. In 2024, this bonus depreciation level will drop to 60% and it will fall by twenty percentage points until 2027 when bonus depreciation will go away entirely. What this means for businesses is that their money will go much further this year compared to the immediate bonus depreciation value in the coming years. 

Equipter recently sat down with Kyle Beltle, CPA from Kauffman CPA Company to talk through how Section 179 and bonus depreciation can benefit your business. View the video below or watch it on YouTube. 

The benefits of the Equipter 4000 are widely known throughout the roofing, construction, and renovation industries. One piece of financial information worth considering when you think about where to spend your money is how well the Equipter holds its value, year after year, as compared to comparable pieces of construction equipment and work vehicles. Equipters that have been in service for five years rarely trade hands for less than 80% of their original price tag, a phenomenal statistic considering how much use you will get out of the Equipter in that span of time. Unlike other heavy equipment manufacturers, as of the writing of this article, the Equipter has a short lead time and can be delivered and put into service before the end of the year. 

For more information on Section 179, and its depreciation and amortization tables on IRS Form 4562, you should consult with your accountant or a tax professional. 

Original article: Equipter