Hey, remember this guy? How could you miss him? Some people love him; some people hate him. Now I’m not trying to tell you which group you should be in but I think everyone can agree that his tax plan has some real advantages for those contemplating capital purchases in 2018
The accelerated depreciation, which allows you to write off up to 100% of capital equipment purchases in year one, can save you a bundle if things in your world are going well and you need big write offs in 2018. This, coupled with near historically low interest rates, gives you a double incentive to move forward on purchases of presses, bindery equipment, etc.
And people have gotten the memo. Try scheduling a truck or a rigger on normal timelines right now – it’s tough. And not just in the big population centers but all over the country. Activity is brisk in all aspects of the equipment business right now and has been all year. We’ve seen it first hand. And the specter of multiple interest rate hikes before year’s end is a fire that is slowly crackling in the background. Below is a link to an excellent calculator for Section 179 deductions. A used DI that cost $ 50,000.00 would cost about $1000.00/mo to own and you could get a $50K tax write off in year one.
The year end logjam of deliveries for 2018 tax write offs is likely to start earlier than normal – plan ahead – sooner is better than later.
http://www.section179.org/section_179_calculator/