Now is the best time to purchase or lease a new/used portable restroom or shower trailer from PRT. Taking advantage of our great deals on closeout units and other in-stock trailers before December 31, 2014 will allow you to capitalize on the Section 179 tax incentive and beat the 8-10% price increase that many of our manufacturers will be implementing in the New Year. Furthermore, each year the deduction changes. In 2013, the deduction was drastically higher ($500,000); next year, it may not be available at all!
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What is Section 179?
Section 179 of the Internal Revenue Tax Code was developed as part of several economic stimulus bills to help business owners and encourage them to invest in capital equipment. It allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year.
How does it work?
Generally when a business buys or leases certain types of equipment, they are written off gradually through depreciation. What makes Section 179 unique, is that is allows businesses to write off the entire purchase price of applicable equipment the same year they buy it. This encourages businesses to buy or lease as much equipment as they need, until they reach the limit on equipment purchases.
What are the limitations?
For 2014 returns, an equipment purchaser or lessee can deduct up to $25,000 from their tax burden. After $25,000, a bonus depreciation rate of 50% kicks in. There is a $200,000 cap on the Section 179 Deduction, with reduced deductions beyond that.
Equipment must be purchased between January 1, 2014 and December 31, 2014 to apply to the Section 179 deduction. To receive the deduction in 2014, all equipment must be delivered and in-use by midnight on December 31, 2014. This means now is a great time to purchase an in-stock unit; we will ensure delivery by the deadline. Those ready to purchase now can also lock in 2014 on in-stock inventory, prior to the 8-10% increase many of our manufacturers will be mandating in 2015.
What equipment qualifies for a Section 179 Deduction?
Most equipment that business purchase or lease will qualify. Here are some examples:
- Equipment purchased for business use
- Tangible personal property used in business
- Business vehicles with a gross vehicle weight in excess of 6,000 pounds
- Computers
- Computer "Off-the-Shelf" Software
- Office Furniture
- Office Equipment
- Property attached to your building that is not a structural component of the building
- Partial Business Use (applies only to equipment used for business more than 50% of the time)
The equipment purchased needs only to be “new-to-you”, not “new-new.” This means that new AND used restroom trailers and shower trailers from PRT are eligible for the deduction.
Can you show me an example deduction?
If a company purchases or leases a portable restroom trailer for $25,000 and is part of the 35% tax bracket, the deduction would save the company $8,750. That means, they were able to get portable restrooms for only $16,250!
Is Portable Restroom Trailers offering any additional incentives?
We have secured extremely attractive financing through our bank to help our customers take advantage of the Section 179 Deduction. We are offering 90 days same as cash with some of the best rates ever on portable restrooms and shower trailer equipment.
We have an amazing buy-back policy on new units offering up to 80% of the original price at the year from purchase - subject to condition and inspection of the trailer. Trade-ins for qualified units and full warranties on new portable restrooms and shower trailers also makes PRT the premier provider in the industry.
What’s the next step?
We can help you find the portable restroom or shower trailer you need to help grow your business now! Don’t wait until next year to pay more on the same unit and possibly miss out on this great tax incentive. Contact us to at 1-877-600-8645 to get started, or browse our complete selection of inventory online.
We also recommend you speak with your accountant or tax attorney regarding any questions on the Section 179 Deduction. You will need to fill out part one of IRS form 4562 for this deduction when preparing your 2014 tax returns. In addition, Congress may be restoring the maximum amount of expensing under Section 179 to $500,000 and the reinstatement of the expired 50% bonus depreciation for the purchase of new capital assets. This means there may be the opportunity to write off a much larger sum in 2014, but we are still waiting for Congress to determine such.
