As a business equipment dealer, your customers expect you to know everything about the products you sell. What they don’t expect — but will certainly appreciate — is your help with saving them money through IRS 179.
What to Know About IRS Section 179
IRS 179 helps small businesses lower their tax burdens through the deduction of business-related equipment and technology. Instead of having to depreciate the costs of their purchases over a five-year period, IRS 179 allows small organizations to write off the full price the same fiscal year they purchase and use the items. Even if the equipment is financed, the entire purchase price can still be deducted.
Let’s say you sell commercial-grade kitchen appliances to restaurant owners. A customer expresses interest in merchandise totaling $200,000. However, the customer is worried about having to wait half a decade to write off the purchase. This is your chance to educate the customer about IRS 179 and address what’s preventing them from purchasing.
3 Benefits of Informing Customers About IRS 179
Why share information about IRS 179 with prospective and existing customers?
- They’ll be less worried about making a large investment.IRS 179 relieves your customers’ tax burdens sooner, giving them the confidence to invest in what they need to scale.
- They might make larger purchases. As of 2022, the IRS 179 deduction threshold has gone up to $1.08 million. When buying equipment, your customers can write off more of their income, and you can reap the benefits of bigger sales.
- They’ll trust you to take care of their future needs. When you help customers save money, they remember you. They might be more likely to refer you to their peers, giving your business the boost it deserves.
As you have conversations with buyers about their potential savings, be sure to provide them with PEAC Solutions’ IRS 179 calculator. With this tool, customers can see exactly how much they’ll save.
*Credit and equipment restrictions apply. This program does not assume your company will qualify to take advantage of the IRS Section 179 depreciation schedule, which allows rapid first-year depreciation of certain assets acquired. Please consult a tax advisor or accountant for additional information.