In the market for additional commercial trucks and equipment? You may want to jump on it sooner than later. Why the urgency? It’s because of a major tax deduction known as Section 179, and the deadline to capitalize on its full benefit is December 31, 2022.
If you’re unfamiliar with Section 179, it’s a tax deduction allowing companies to write off the full purchase price of new and used equipment during the calendar year. Companies in 2021, for example, can deduct all the way up to $1,050,000 on eligible equipment purchases. However, that eligible equipment must be purchased and placed into service before midnight on December 31. While we’re running out of days in 2021, and new commercial trucks somewhat of a scarcity, used equipment purchases—like Aim’s certified pre-owned vehicles—might be your best bet to squeeze in some last-minute purchases and take advantage of Section 179 in 2021.
What if you’re not in a position to acquire new equipment before the year is up? Don’t fret. You can still maximize your Section 179 tax savings through December 31, 2022, giving you that lucrative 100% deduction. And this applies to equipment purchased outright or leased and placed into service before January 1, 2023.
This amounts to one thing: the time to act is now. Going into 2023 and subsequent years, the total allowable deductions will decrease 20% annually. For example, equipment purchased and placed into service after January 1, 2023, and before January 1, 2024, the deduction is reduced to 80%. The following year is 60%, and so on.
Next year, with the ability to take full advantage of Section 179, it might be a good time to try leasing your fleet if you don’t already. With an Aim full-service lease, you avoid that large upfront investment that goes along with owning your equipment. While freeing up capital, you also get to take advantage of low, predictable monthly payments, administrative relief (licensing and permitting), worry-free maintenance and upkeep, 24/7-365 nationwide Road Rescue service and near limitless vehicle specification options tailored to how you do business.
If you need to add to or refresh your fleet and want to secure that 100% deduction before it decreases, Aim can help you come in under the deadline. Reach out to firstname.lastname@example.org for more information on leasing and used truck options.