The year is nearing its end. Have you taken advantage of the tax breaks available to plumbers and drain cleaners?
This year, the total deduction amount has been increased to $1,000,000 with a total investment limit of $2.5 million. This is double the amount offered last year, and the highest it has ever been. Because Section 179 is adjusted so often, there is no guarantee that these benefits will last. Those planning on making equipment purchases should take full advantage of this tax deduction while it’s still available.
For example, a plumber who spent $50,000 on new drain cleaning equipment can use Section 179 to write off the entire purchase price for the current tax year. If he’s in the 35% tax bracket, he’ll get $17,500 back in his pocket! In years past, when he bought qualifying equipment for his business, he could only write it off a little at a time through depreciation.
Pro Tip: Remember, all businesses are unique. Talk to a tax professional or accountant before making any decisions.
Between computers, cable machines and plumbing tools, it takes a lot of different equipment to keep your business running. When assessing your business purchases, there are a few things to keep in mind:
Pro Tip: Curious about your potential deduction? Take a look at all of your qualifying business purchases and simply calculate your potential deduction.
When figuring out the best time to purchase new equipment for your business, take its tax implications into consideration. That new drain cable machine you’ve been eyeing could help decrease your total tax burden, while helping you sustain and grow your business. The purchases you’re putting off until next year may make more financial sense this year. Ready to check out some equipment for your plumbing and drain cleaning business?