The IRS wants you to succeed almost as much as we do.

Section 179 tax savings can help you purchase the high-quality Bobcat® compact construction equipment your business needs. The Internal Revenue Service (IRS) created Section 179 so that small businesses could have extra income to buy the equipment and technology that would help them grow at a faster rate. Usually, purchasing your dream excavator results in a percentage of its depreciated cost being deducted from your income over a longer time period. However, with Section 179, the full purchase price can be deducted from your gross income.

DO YOU QUALIFY?

It really doesn’t take much to qualify for Section 179. Your equipment must be purchased and in use by December 31, 2023, and it must be used for your small business at least 50% of the time. This is a “New to You” tax code, meaning that it can be applied when you purchase either new or used equipment.

HOW MUCH CAN YOU SAVE?

For 2023, the Section 179 deduction limit is $1.16 million with a total equipment spending limit of $2.89 million. Once the spending limit is reached, “the deduction reduces dollar-for-dollar until it disappears.” That means that Section 179 no longer applies if you spend $4.05 million or more on compact equipment.

WHAT ARE THE PROS AND CONS?

This IRS tax code can positively impact your small business’ profitability but less positively affect your federal income tax rates.

“It has the advantage of freeing up cash a lot quicker because you’re not waiting over a period of time to depreciate that asset over years,” says Jeffrey Levine, CPA and Tax Expert for Buckingham Strategic Wealth. “The downside to it, though, is that by taking a significant 179 deduction, you may end up depreciating too much and push yourself into lower brackets.”

HOW CAN WE HELP YOU?

It’s not lost on us that a brand new Bobcat skid-steer loader with all the attachments and implements can get expensive. Taking advantage of our limited-time special offers and financing opportunities can help offset that upfront cost, and if you do it before December 31, 2023, you can add the Section 179 tax savings on top of our other credit options! Save more on your next purchase by reaching out to our sales team.