Section 179 Improvements for 2018

Section 179 Header

With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act, the deduction limit for Section 179 increases to $1,000,000 for 2018 and beyond. The limit on equipment purchases likewise has increased to $2.5 million.

Further, the bonus depreciation is 100% and is made retroactive to 9/27/2017 and good through 2022. The bonus depreciation also now includes used equipment.

See the fully updated 2018 Section 179 Calculator to see how this tax deduction affects your company.

2017 Section 179 Tax Information (Last Year)

The Section 179 deduction is $500,000 for 2017, with a 50% bonus depreciation in place until late September (see 2018 information for change).

Click Here for the fully updated Section 179 Calculator for tax year 2017 (Last Year).

Answers to the Three Most Common Section 179 Questions

How Much Can I Save on My Taxes in 2018?
It depends on the amount of qualifying equipment and software that you purchase and put into use. See the handy Section 179 Calculator that’s fully updated for 2018, and includes any/all increases from any future legislation.

What Sort of Equipment Qualifies in 2018?
Most tangible business equipment qualifies. Click here for qualifying property.

When Do I Have to Do This By?
Section 179 for 2018 expires midnight, 12/31/2018. If you wish to deduct the full price of your equipment from your 2018 taxes and take advantage of the new higher deduction limits, it must be purchased and put into service by then.

Many businesses are finding Section 179 Qualified Financing to be an attractive option in 2018, especially since the expected Federal Discount Rate increases don’t leave much time for action. Please apply today.

More Section 179 Deduction Questions Answered

Welcome to Section179.Org, your definitive resource for all things Section 179. We’ve brought together a large amount of information regarding Section 179, and clearly and honestly discuss the various aspects of IRS §179 in plain language. This will allow you to make the best possible financial decisions for your company.

Section 179 can be extremely profitable to you, so it is to your benefit to learn as much as possible. To begin, you may have a lot of questions regarding Section 179 such as:

Check out our line-up of new forklifts or used forklifts, then contact us at 888-375-0829 for more information or a quote.


Forklift Purchase Price vs. Total Ownership Costs

When you are purchasing a new forklift or aerial lift, you obtain competitive quotes, verify specifications and generate a purchase order. For that matter, just about anything we purchase goes through the same process. However, there is much more to purchasing forklifts and other material handling equipment. We have found, over the years, that often there are variables that can greatly affect the total cost of ownership of anything, be it an automobile, forklift or a giant cargo container.

The price you pay for your piece of equipment, by most accounts, reflects about 10% of the total ownership costs of that piece of equipment. This leaves 90% of your total costs up in the air. Depending on many variables, you could pay much more for the equipment than you needed to, or much less. These variables include:

Performance and Reliability of Equipment – Comparing cost per hour to operate can give you a good idea of what competing pieces of equipment will cost you over their useful life. When comparing cost per hour to operate, you should be sure you’re comparing similar models under similar circumstances. A lift truck operating 1500 hours a year for a light weight product manufacturer will cost far less over its lifetime than the same lift truck operating at a recycling facility. This cost should reflect general maintenance requirements as well as fuel costs.

Fuel Consumption – While this is often a part of performance and cost per hour, knowing the fuel costs for each comparing brand and calculating total costs over the life of the equipment can sometimes be quite an eye-opener. In addition, what are your fuel alternatives? Can you use electric models? Thinking outside the box may result in lower costs to power your forklift and other lift equipment.

Specifications vs. Operations – It is rare that two 5,000-lb-capacity forklifts from competing brands will have similar specifications. Knowing what your facility will accommodate and comparing that with each model will give you insight into how each model will perform, given your operating parameters. Factors include: aisle width vs. turn radius, draw bar pull, suspension and ergonomics compared to your floor condition, indoor/outdoor use and ceiling height/rack height vs. max lift height. You will also want to compare features between brands to ensure that each lift truck model is equipped with the proper components to meet your operational requirements. For example: Can it operate properly inside your ice cream freezer?

Ergonomics – A comfortable and smooth-running piece of equipment will provide you with increased productivity. These are costs hidden in equipment that are quite real in daily operating conditions. How much time and research and development, does each brand put into the comfort and ease of use of their equipment? Happy, comfortable operators are simply more productive.

Safety – Never underestimate the safety features of your equipment. What equipment is being specified and what equipment is optional from each manufacturer is very important to know. Reducing your accident costs or product/facility damage can make a big difference in your total fleet operational expenses.

Useful Life – Finally, how many hours can you expect from each piece of equipment until the cost to operate becomes cost-prohibitive? This can vary widely depending upon brand and model. But having some qualitative and quantitative information on hand, if possible, will help you make a better decision about the total cost of operating each unit/model.

There are many factors beyond price tag or lease rate that can help you make good decisions about the equipment you purchase. Having a partner that listens, evaluates and fulfills your needs is essential in building a fleet that is most productive and less costly in the long run. Contact us at 888-375-0829 to speak to one of our material handling professionals about the right forklift for your operation.

To Do a BIG Job, You Need a BIG Forklift

When one of our great customers, Mercer Forge needed a BIG, reliable forklift to handle the 10 ton plus steel pipes and bars; then turned to us for a piece of equipment that would do the job, reliably and within their budget. We recommended the Doosan D140S-7. The Doosan D140S-7 heavy-duty forklift is powered by Doosan’s 5.9 liter diesel engine featuring intercooled turbocharging that generates over 158hp.

Doosan Forklift

The cab and seat are heated to provide comfort when working outdoors during our region’s coldest winter months. It also features a stereo with bluetooth connectivity. To retrieve and deposit these big loads, it has 96″ forks, 144″ two-stage mast and sideshifting fork positioners.

When it comes to forklifts that will handle the largest loads, all day, every day, you can count on Doosan and Valley Industrial Trucks to get you the right forklift for the job you need done, and keep it operating at maximum productivity with our planned maintenance programs.

Check out our Doosan Forklift Showroom. When the time comes for a durable and reliable forklift and forklift service company, Contact Us, or give your local Valley Industrial Trucks branch a call. We serve northeastern Ohio and Western Pennsylvania from our convenient Youngstown and Akron facilities.