Leverage Assets for 2020 Success
As business owners gear up for 2020, now is the time to develop a plan for success. Entering a new year brings many uncertainties; however, creating a strategic plan can guide business owners through murky waters. The best-kept secret for 2020 success is leveraging company assets. As long-term assets depreciate over-time, it is very important to capture any remaining value. Leveraging assets as collateral for a new equipment loan can lay the foundation for 2020 success in more ways than one. Obtaining a loan as an investment strategy can set a company apart from competitors while boosting company success.
According to the Internal Revenue Service (IRS), tax code Section 179 allows business owners to deduct the purchase price of equipment from their income taxes (up to a certain amount). The equipment can be new, used, leased, financed, or purchased. The equipment must be placed into service within the tax year in which the deduction is claimed. “For tax years beginning after 2017, the TCJA increased the maximum Section 179 expense deduction from $500,000 to $1 million. The phase-out limit increased from $2 million to $2.5 million. These amounts are indexed for inflation for tax years beginning after 2018.” (Source). In 2019 business owners may claim up to $1 million of equipment purchases as a deduction on their taxes. Many business owners are taking advantage of Section 179 by purchasing equipment before the 2019 calendar ends so that they can not only acquire new equipment but also receive that tax deduction!
As an industry leader in equipment loans, Ohio-based CFBank focuses on helping business owners make strategic decisions with company assets by leveraging them as collateral. With a primary focus on entrepreneurs and closely-held businesses, CFBank helps business owners understand the best options for their unique needs. CFBank prides itself on having no red tape, no long delays, or giant hoops to jump through. They approach these intimate financial decisions collaboratively with a dedicated loan officer to manage the loan process from loan structure to loan approval. Take advantage of this investment strategy before the year-end.
*This article does not give tax advice. For assistance with business taxes, contact a tax professional.