Best Option for Step Van Discounts

Best Option for Step Van Discounts

Every ISP Contractors wants the best pricing when it comes to purchasing business equipment and supplies. ISP Contractors, like any other business owner, juggle many aspects of the business, from human resources and training, to payroll and truck purchasing. ISP Contractors typically don't have the extra time, especially during peak season, to find the best pricing for step vans. With over a decade of direct relationships with ISP Contractors across the nation, MAG Trucks understands that truck buying is not always a priority for the route owners. MAG has outlined the best option for step van discounts and is sharing it with ISP Contractors to eliminate some of the ambiguity and anxiety when beginning the search for a new or used step van.

Best Option for Step Van Discounts

 

The Best Option for Step Van Discounts:
thank you, Section 179!

The best option for step van discounts is to take advantage of the Section 179 deduction, which most ISP Contractors are very familiar with and hopefully have utilized. As a small or medium-sized business, most ISP Contractors qualify for the 2019 Section 179 Deduction. Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.* (information reposted from the section179.org website).

Check out the chart below, which was originally posted on the section179.org website.
Here is an updated example of Section 179 at work during the 2019 tax year.

 

IRS Section 179 Details:

  • Limits: Section 179 does come with limits – there are caps to the total amount written off ($1,000,000 for 2019), and limits to the total amount of the equipment purchased ($2,500,000 in 2019). The deduction begins to phase out on a dollar-for-dollar basis after $2,500,000 is spent by a given business (thus, the entire deduction goes away once $3,500,000 in purchases is reached), so this makes it a true small and medium-sized business deduction.
  • Who QualifiesAll businesses that purchase, finance, and/or lease new or used business equipment during tax year 2019 should qualify for the Section 179 Deduction (assuming they spend less than $3,500,000).
  • What Purchases QualifyMost tangible goods used by American businesses, including “off-the-shelf” software and business-use vehicles (restrictions apply) qualify for the Section 179 Deduction.
  • Business Use: The equipment, vehicle(s), and/or software must be used for business purposes more than 50% of the time to qualify for the Section 179 Deduction. Simply multiply the cost of the equipment, vehicle(s), and/or software by the percentage of business-use to arrive at the monetary amount eligible for Section 179.

What qualifies? View the Section 179 Qualifying Property list here.

Click this link for details: Section 179 Qualified Financing and Leasing Plus Bonus

The obvious advantage to leasing or financing equipment and/or software and then taking the Section 179 Deduction is the fact that you can deduct the full amount of the equipment and/or software, without paying the full amount this year. The amount you save in taxes can actually exceed the payments, making this a very bottom-line friendly deduction (you are reading this correctly; in many cases, the tax savings from the deduction will make your bank account larger than if you never financed the equipment in the first place.)

MAG Trucks and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

 

Do you want to take advantage of the Best Option for Step Van Discounts? Check out MAG's inventory at https://www.magtrucks.com