[RIGGER’S CORNER]
UNDERSTANDING THE NEW TAX LAWS - WHY IT’S THE RIGHT TIME TO BUY NEW EQUIPMENT.
BY: CHANT ENGINEERING
Tere has never been a better time to invest in your business’ future. It’s a new year and we have some great new tax laws that will benefit not only the manufacturing industry, but it allows business owners to finally be able to purchase that long overdue new equipment and take a major capital deduction on their taxes.
What this means for small businesses on future equipment purchases? Owners can now deduct up to $1 Million in 2018, which is a substantial increase over the 2017 deduction amount. Te reform bill also increases bonus depreciation from 50% to 100%.[1] First and foremost, the corporate tax bill lowers the tax rate from 35% to 21%.[2]
Owners will have from 2018 to
2022 to take advantage of the 100% depreciation, basically five years before it tapers off.[3] To learn more about the Section 179 Deduction and
how it can help with future equipment purchases, visit:
http://www.section179.org/ [4]
. Dig into this site, as they also
THINGS TO CONSIDER WHEN PURCHASING EQUIPMENT: • Is the vendor a trusted and proven source? • How long have they been in business? • Does the vendor completely understand your business and your customer’s needs? • Have you toured their facility to fully understand their capabilities? • Does the vendor have a knowledgeable staff who can successfully design, engineer, install, calibrate and support your product?
• What type of training will the vendor provide for your staff? • What kind of support can they provide after machinery is delivered to your site? • Do they have a proactive maintenance plan to help you keep your machinery up and running to limit production downtime?
• Do they offer specialized software to help certify your products? • Bottom Line: lowest cost doesn’t necessarily mean best value; your end goal is a safe, quality product.
80 JANUARY–FEBRUARY 2018 WIRE ROPE EXCHANGE have a handy TaxDeductionCalculator™[4] to quickly help
you evaluate the equipment purchase price and projected deductions you can take. We recommend talking to your accountant, so you fully understand how these Tax Reform Laws can benefit you and help you grow your business. All in all, this is great news for business owners. It’s definitely the right time to start looking at new machinery to make your business more efficient or to replace machinery that is on its last leg, limping by and long overdue for replacement. “We have been building machinery consistently for nearly
50 years. Our customers trust us to deliver a machine that is safe and one that is built to last. Customers also like that our products are made in the USA as we are held to some of the highest quality manufacturing standards in the world.”, said Phil Chant, President of Chant Engineering. y
For more information about Chant Engineering, please visit www.
chantengineering.com.
[1]Stockton, Gary. “Will Tax Reform Give Small Businesses Much Needed Relief?”: Experian, Business Credit Education, 2017.
[2]Jacobson, Louis. “What’s in the final version of the tax bill?”: Politifact, 2017.
[3]Plastics News Staff. “Republican tax reform brings optimism to the industry”: Plastics News, PN Daily Report, 2018.
[4]
http://www.section179.org. Image of 2018 Section 179 Example Calculation compliments of
www.crestcapital.com and Tax Deduction Calculator™.
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