Maximize Your Power Investment with Section 179!

Unlock Tax Savings on Your Industrial Generator Purchases!

As a business owner, navigating the tax landscape can be daunting, but did you know there’s a legal avenue available that can significantly reduce your business taxes? Enter Section 179, a powerful tool that allows you to deduct the full cost of qualifying capital assets—like an industrial generator—immediately. This means more savings today and less waiting around for depreciation.

What Is Section 179?

Section 179 enables businesses to deduct the full purchase price of qualifying equipment (like your trusty industrial generator) in the year it’s purchased rather than over its useful life. No more complex accounting practices that leave money on the table!

To Qualify for Section 179, Your Generator Must Be:

• Tangible: It should be a physical asset. Intangible assets like patents won’t qualify.

• Purchased: Leased equipment doesn’t count.

• Used Primarily for Business: The generator must be utilized for business purposes over 50% of the time.

• Not from Related Parties: The generator should not be obtained from family or inherited.

Why Act Now?

Investing in an industrial generator toward the end of the calendar year can minimize the time between your purchase and tax savings. Q4 is the perfect time to make this financial move!

Here’s an Example to Consider:

Let’s say a manufacturing business needs backup power and decides to purchase a used Cummins 350 kW generator for $54,000. Assuming a corporate tax rate of 35% and within the $1,220,000 Section 179 deduction limit, they could effectively reduce their costs by nearly $19,000—bringing the real purchase price down to around $35,100!

Key Figures:

• Purchase Price: $54,000

• Tax Bracket: 35%

• Section 179 Deduction: $54,000

• Cash Savings: $18,900

• Net Equipment Cost After Tax Savings: $35,100

Interested in seeing how much you could save? Visit Section 179.org to calculate your potential deductions based on your purchase price!

Need More Information?
Contact KC Decomm today to learn about the Section 179 deduction and how it can benefit your industrial generator investment. Call us at (561) 629-5713 or email us at [email protected].

Quick FAQs About Section 179:

• What is Section 179?
  A tax deduction allowing businesses to deduct the full purchase price of qualifying equipment in the year of purchase.

• What types of generators qualify?
  New, used, and surplus generators used for business purposes over 50% of the time.

• What is the maximum deduction for 2024?
  The maximum deduction is $1,220,000, phasing out dollar-for-dollar after $3,050,000 in purchases.

• When must I purchase my generator?
  To qualify for the 2024 deduction, your generator must be purchased and put into service by December 31, 2024.

• Can I finance my purchase?
  Yes! Financed equipment can qualify for the deduction as long as you take on the risk of ownership.

• How do I claim this deduction?
  Fill out Part I of IRS Form 4562 and include it with your tax return. Consulting a tax professional is advisable to ensure eligibility.

Make the most of your industrial generator investment and tax savings with Section 179!