We’ve nearly made it through 2020, and we’re hearing a lot of claims that it will get better soon. Luckily, there are a few things that we can control from this past year, one of them being how we file our taxes. Section 179, for example, is a fairly new tax benefit of particular interest to those in the self-storage industry. Designed to boost the economy and help small and medium-sized businesses, Section 179 allows the write off of an entire purchase price of qualifying equipment in the year it was purchased. Self-storage operators can take advantage of this deduction for a positive impact.
Qualifying equipment must be tangible, depreciable, and used to conduct business. This includes machines, tools, tractors, trucks, technology, software, office furniture, office equipment and other similar equipment. Did you know that small structures on your property, such as storage units, are also considered qualifying equipment? Self-storage operators can maximize their upcoming tax deductions and make strategic decisions for 2021, which is bound to be a better year for everyone. To be able to claim a Section 179 deduction, a business must have a taxable profit, and the deduction can only be made up to the amount of taxable income.
How Does It Work?
Be in the know when you organize your yearly financials. Find out how about the tax benefits for facility owners can help you get more immediate savings from your self-storage assets and business expenditures. So, how does it work? With Section 179, you can put your assets on your balance sheet – so they don’t become an expense. You will reduce your overall profit and maximize your tax savings. Businesses can use Section 179 to purchase needed equipment right now, instead of waiting. Companies taking advantage of Section 179 deductions aren’t paying less taxes, but they are saving money in the year they made the purchase. Without Section 179, those savings would take 5+ years to show. This encourages small businesses to purchase more while not taking away from the overall tax revenue.
Small businesses need all the help we can get, especially in 2020. Ask your tax consultant how you can use Section 179 to your advantage. Also check out the Section 179 website for more detailed information.
Boxwell provides storage solutions for all kinds of businesses. We achieve this by staying true to our product and really listening to our customers, our partners and each other.
Work with a Boxwell representative to decide on an ideal, moveable storage unit mix, custom colors, door conﬁgurations and more. Once the order is placed, your Boxwells will be delivered, installed, and ready to rent. Check out www.boxwell.co or call (303) 416-6280 today!