Tax Savings on New and Used Forklifts Still in Play for 2018
Under 2018 Section 179 rules, first-year bonus depreciation has been expanded to include used equipment bought and placed in service after September 27, 2017. The first-year bonus deduction for all qualified equipment also increased from 50 percent to 100 percent of its cost.
Another provision of the new tax law increased the maximum depreciation deduction on section 179 property from $500,000 to $1 million and increased the cap on the equipment purchases from $2 million to $2.5 million. Those changes took effect December 31, 2017, according to the Internal Revenue Service. Under section 179, equipment purchases are treated as an expense and deducted from income.
Both section 179 and bonus depreciation allow 100 percent write-off of the cost of used equipment in the first year. Both also stipulate the equipment must be put into use in the year the purchaser takes the deduction.
But remember, in order to take advantage of these significant tax savings for 2018, you MUST acquire your equipment and PLACE IT INTO SERVICE by midnight December 31, 2018. Learn more about Section 179 at www.section179.org.
Now is the best time to save BIG in 2018 on a new forklift OR used forklift, aerial lift, sweeper, scrubber or commercial vehicle in Cleveland from All Lift Service Company. Give us a call for a quote today.