Optimizing Your Operations and Your Ledger
As we approach the halfway point of 2021 (yep: July 2nd, for those calendaring on at home), it's never too soon to think about the end of the year.
COVID-19 restrictions are easing in the United Staes. The economy looks to be revving up. The supply-and-demand pendulum has swung back in favor of the demand side, which is causing all sorts of logistical challenges across multiple industries.
Given this past year and a half of unpredictability, we'll be the last ones to predict what the next six months will bring.
Except for this: we know ⏤ and with fairly good certainty ⏤ that the Section 179 tax break remains an excellent way to save money for your company's bottom line.
As Uncle Sam describes it:
“Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income.”
For the year, that means a deduction of up to $1,050,000. That's not peanuts. And we like peanuts.
Among a few other terms, this means putting your equipment into service by December 31, 2021 in order to qualify for the deduction.
And there's the rub. The supply-and-demand imbalance is disrupting the ability to get essential and desired things to the end user in a typical, pre-pandemic manner. That's why we're encouraging you to plan ahead for the rest of your year's needs with some extra buffer room.
We've detailed the steel surcharge that's affecting us our customer base. Essentially: our factories are passing through to us a "steel surcharge" on new yard ramps. We, in turn, will pass through this charge to our customers without markup.
The good news is that both Section 179 and ⏤ should you need or want it ⏤ our partners' financing services are agnostic about the total price. Which means that with or without a steel surcharge, you stand to take a full deduction off your purchase price for qualifying equipment.
It's a great deal. In our eyes: totally worth it.