For hardscaping businesses, there’s an opportunity to take advantage of tax benefits with Section 179. Investing in heavy equipment can be a major expense. Fortunately, there’s a way to ease the financial burden.
By financing your next skid steer, compact track loader, or mini-excavator, you may not only access the latest equipment with lower upfront costs, but also claim Section 179 tax benefits.
In this article, you can see specific models in the hardscaping industry that may qualify for Section 179 tax benefits in 2023, as well as the benefits of financing.
In this article…
- Does Financing Help Hardscaping Businesses Qualify for Section 179?
- How Does Section 179 Apply to Hardscaping Equipment?
- Popular Landscaping Equipment That May Qualify for Section 179
- Advantages of Financing Hardscaping Equipment
- How to Qualify for Section 179 Tax Benefits on Financed Hardscaping Businesses
Whether you’re a seasoned pro or a newcomer to the hardscaping industry, this article is a must-read for anyone looking to take advantage of Section 179 tax benefits in 2023.
Does Financing Help Hardscaping Businesses Qualify for Section 179?
Yes and here’s why.
By financing a large equipment purchase, your hardscaping business can not only access the newest equipment model with lower upfront costs, but also claim Section 179 tax benefits.
This can help your business save money on taxes and free up capital for other investments.
How Does Section 179 Apply to Hardscaping Equipment?
Section 179 allows businesses who acquire qualifying equipment to deduct the full purchase price from their taxable income in the year its acquired and put into service.
This results in significant tax savings for hardscaping businesses that invest in heavy equipment, such as skid steers, compact track loaders, and mini excavators.
Popular Landscaping Equipment That May Qualify for Section 179
Below is a partial list of various hardscaping equipment that may qualify for this tax incentive when you finance.
Skid-Steer Loaders
- Bobcat S850
- John Deere 333G
- Caterpillar 246D
Compact Track Loaders
- ASV POSI-TRACK RT50
- ASV POSI-TRACK RT135F
- Bobcat S850
- John Deere 319E
- Caterpillar 299D2 XHP
Mini Excavators
- Bobcat E55
- John Deere 35G
- Caterpillar 304.5E2 CR
Advantages of Financing Hardscaping Equipment
By financing your next equipment purchase, you can take full advantage of the benefits offered by Section 179 to help take your landscaping company to the next level.
Some benefits include:
- Lower upfront costs: By financing your next equipment purchase, you can access the latest equipment with lower upfront costs, making it easier to upgrade your landscaping fleet.
- Increased tax savings: Financing equipment can make it easier for you to take advantage of Section 179, which can result in significant tax savings in the year you acquire equipment and put it to use.
- Improved cash flow: Instead of tying up capital to purchase equipment, free up your cash and invest it in other areas of your business.
How to Qualify for Section 179 Tax Benefits on Financed Hardscaping Equipment
In general, there are a few criteria and conditions your business needs to fulfill to qualify for this tax benefit. The following criteria are general requirements, so be sure to consult your CPA or professional tax advisor before your equipment purchase.
What condition does the equipment have to be?
The equipment you purchase can be brand new or used.
What does the equipment have to be used for?
Equipment you acquire must be used for business purposes at least 50% of the time.
When does the equipment have to be acquired?
The equipment you acquire must be obtained and placed in service by December 31st.
Because it might take some time for your equipment to ship, it’s best to plan ahead. The sooner you start getting and using your equipment, the better odds you have to utilize this tax benefit.
To expedite the process of getting equipment, you can get pre-approved for financing. By getting pre-approved you will have a clear understanding of your budget and quickly purchase your landscaping equipment as soon its available.
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Let’s Recap
As this article explains, financing hardscaping equipment can be an effective way for your business to take advantage of the tax savings offered by Section 179.
By financing your next skid steer, compact track loader, or mini-excavator, your business can not only access the latest equipment model with lower upfront costs, but also claim Section 179 tax benefits. This can help you save money on taxes, free up capital for other investments, and improve your financial standing.
* To make the most of Section 179 tax benefits, be sure to consult your tax professional before your equipment purchase.