As we move toward the end of 2023, companies of all sizes are looking for ways to kick off the new year on the right path. Understandably, however, many companies are reluctant to spend a lot of money or deal with the potential tax burdens that come with business expansions.
If you are in this situation, then you are in luck. Recent IRS tax code changes enabled companies to deduct qualified purchased-asset or leased-asset costs as an expense during the purchase year. By combining these tax changes with PEAC Solutions’ No Pay Program, business owners will be better positioned to bring in the new year with success.
What Is IRS 179?
Changes to IRS 179 make it possible for companies to lower their tax burden each year by changing what tax deductions they can claim. Changes to IRS Section 179 allow business owners of all sizes to deduct any business-related equipment and technology purchases made during the tax year.
Rather than having to depreciate any equipment purchase costs over five years, changes to IRS Section 179 allow small organizations to claim a business equipment write-off for the total price of the equipment in the same fiscal year that the purchase was made. This is true even in cases where you have equipment financing, as business owners can still deduct the entire price even if it has yet to be completely paid off during the tax period.
Consider a scenario where you sell commercial-grade kitchen appliances to the owners of restaurants. Imagine that you have a potential customer interested in your offer. Still, they have reservations about waiting five years before receiving substantial tax benefits for their $200,000 purchase. This presents a golden opportunity to enlighten the customer about the advantages of IRS Section 179 and address the concerns that might be holding them back from making the investment.
You can alleviate their apprehension and close the sale by highlighting the immediate and substantial tax savings this provision offers. Combining all of the benefits of IRS 179 with PEAC’s No Pay Program can help you maximize success. For qualified people, PEAC provides the opportunity to acquire equipment without any upfront payment until the new year. This means you can claim a full tax deduction for the equipment’s purchase price without the immediate financial burden.
Combining Both Programs Effectively
Before these changes, each business equipment write-off was made gradually over several years. This resulted in businesses experiencing significant upfront costs for large purchases without having the ability to claim tax deductions for them all at once. The changes to the tax code were designed to stimulate small business growth by permitting a deduction of up to $1,160,000 for equipment purchased in the same year.
These changes are significant when it comes to how to lower your tax burden. However, it is not always possible for companies that do not have the money upfront for new equipment to take advantage. This is where PEAC’s program comes in.
For those who qualify, this program allows business owners to purchase the equipment and technology they need without worrying about paying anything until next year. During the application process, equipment financing customers set up a payment plan to defer the initial payment and schedule subsequent payments that fit their budgets.
Combining IRS Section 179 with PEAC’s No Pay Program can bridge the financial gap, allowing you to finance equipment at an attractive rate. For many business owners, having the ability to make large purchases while receiving significant tax advantages helps them overcome hurdles to expanding their operations. Leveraging these dual benefits enables them to enhance customer service without straining their finances.
Time is running out to take advantage of this opportunity, so take advantage of it! With PEAC Solutions’ tax savings calculator, you can quickly calculate how much your business will save in taxes when using the IRS Section 179 deduction. This is an excellent opportunity to invest in equipment that your business needs without breaking the bank. Plus, our knowledgeable team at PEAC Solutions can help set you up with an affordable and secure equipment financing solution.
Disclaimer: PEAC does not provide legal, tax or accounting advice. The customer must obtain and rely on such advice from its own accountants, auditors, attorneys, or other professional advisors. These materials are for informational purposes only. Nothing herein constitutes tax advice and customers should consult with their tax advisors prior to electing specific rates or options.
PEAC Solutions is a DBA of Marlin Leasing Corporation. Equipment financing is provided by Marlin Leasing Corporation. Working capital loans are originated by WebBank.