Now is the time to buy capital assets. Section 179 of the U.S. Internal Revenue Code provides tax benefits for businesses that purchase qualifying equipment, including forklifts. Thanks to the 2017 tax legislation, businesses have been able to deduct a significant amount of 'bonus' depreciation in the year they buy and place an asset into service.

In 2023, the maximum depreciation is $1.16 million. Businesses can deduct 80% of the asset in the year you put it into service and must then depreciate the remaining 20% over the asset's life. In 2024, the first-year deduction falls to 60% of the asset price and ultimately falls to 20% in 2026. The takeaway is to maximize that first-year deduction and step up your equipment purchases this year.

How to Calculate Your 2023 Section 179 Deduction?
The advantage of the Section 179 tax deduction is the ability to increase your upfront tax savings. Your overall savings can vary - the 2023 Section 179 Deduction Calculator can help you estimate your tax savings for 2023.

Tax laws and regulations can change, so it's essential to consult with a tax professional or accountant who is up to date with the latest tax codes and can provide guidance specific to your business and tax situation.

Thinking of purchasing a Toyota forklift? In 2018, congress expanded the Section 179 tax deduction limit to $1 million on qualifying material handling equipment – including forklifts. So now may be the time to buy!

How Does Section 179 Work?

In previous years, businesses typically wrote off their equipment a little at a time through depreciation.  The Section 179 Deduction allows your business to write off the entire purchase price of qualifying equipment for the current tax year, up to $1 million.  Use this calculator to help estimate your tax savings and see how the Section 179 Tax Deduction can make a difference to your bottom line at the end of the year.  Consult your tax advisor to determine if you qualify and if this deduction is right for you.

How Much Money Can I Save?

The amount of money you save depends on the amount of qualifying equipment purchased and put into use in the qualifying year.

Is There a Deadline?

Yes! Qualifying equipment must be purchased or financed AND put into service before midnight on December 31, 2018.

Does all Toyota Forklift Equipment Qualify?

The IRS allows for Section 179 depreciation on qualifying equipment, including forklifts, used in a business or income-producing activity. Consult your tax advisor for more information.

Contact Us for questions and to take advantage of the year-end tax savings.