MAZO Capital Solutions Small Business Spotlight - Section 179
October 6th, 2021
MAZO is proud to highlight small businesses in America's small business community.
Irvine, CA, October 6th, 2021—In this month's small business spotlight blog post, we will do something slightly different and not highlight a specific business but highlight a tax code that can be very useful for every small business in America.
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased/financed during the current tax year. This is huge for small businesses across America and is an incentive put in place by the U.S. government to encourage capital spending and investment. The deduction for this tax year, 2021, has gone up from $1,040,000 (in 2020) to $1,050,000.
Due to unprecedented demand and ongoing supply chain disruptions as a result of COVID-19, we are seeing significant equipment shortages in the industries we serve. Our partners are highly encouraging all business owners to begin shopping for any purchases or equipment they need prior to the end of the year so they can take advantage of Section 179.
The business development team at MAZO Capital Solutions took some time to hear from a couple of their equipment dealers with how exactly they are handling this equipment shortage.
“First we are educating our customers. This year is much different from previous years, so we are having to shift buying habits. Customers are not able to walk in on December 31st and need to make a purchase prior to hitting the end of the year deadline. We are having to make sure customers are planning ahead and that is exactly how we have handled this environment. The nice thing is every industry is in the same boat we are.”
-Justin D. with Gateway Dealer Networkhttps://www.gatewaydealer.com/
"We intend to send an email campaign to every customer in our database encouraging them to purchase equipment before the end of year to capitalize on section 179. We're also encouraging them to put their orders in as soon as possible due to inventory shortages and turn-times."
-Dave M. with Leppo Rentshttps://www.lepporents.com/