2022 is almost over, but you still have time to talk to your CPA and figure out your end-of-year fiscal spending and how to best utilize this for tax deductions.
Since time is very short, we decided to help you by highlighting how Section 179 of the IRS Tax Code can benefit your business and what BestPack can do to help you with this.
Section 179 at a Glance for 2022
Section 179 deduction is part of the Tax Code that allows businesses to deduct the purchase price of any qualifying equipment purchased during the tax year you are currently in. That means that if you buy a qualifying piece of equipment for your business and put it into service within that year, you can deduct the FULL purchase price from your gross income. This was created by the government to inspire businesses to invest in themselves and further their expansion.
2022 Deduction Limit: $1,080,000
This deduction is good on new and used equipment, as well as off-the-shelf software. To benefit from this deduction for 2022, the equipment must be financed or purchased and be placed into service between January 1, 2022, and the end of the day on December 31, 2022.
2022 Spending Cap on Equipment Purchases: $2,700,000
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar-for-dollar basis. This spending cap makes Section 179 a true “small business tax incentive” (because larger businesses that spend more than $3.5 million on equipment won’t get the deduction.)
Bonus Depreciation: 100% for 2022
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used equipment.
Who Qualifies for Section 179?
All businesses that purchase, finance, and/or lease new or used business equipment during 2022 should qualify for the Section 179 Deduction (assuming they spend less than $3,780,000).
Learn more about Section 179 and the rules for it here: https://www.section179.org/
How Can BestPack Help You Take Advantage of This?
Here at BestPack we specialize in providing the best of the best in packaging solutions. From fully and semi-automatic carton erecting and sealing machines to customized tape designed for enhanced sealing in various applications, we have built our business around helping brands to automate their sealing process and boost efficiency. We focus on high-quality products for your business, innovation through customized solutions for our clients, and responsibility for your expansion.
If you are making the changes in your business to become more automated, we can definitely help with that. Your employees will be free to take on more challenging tasks that basic automation can’t fulfill, helping to increase overall productivity and the bottom line.
For that, you are going to want to take a look at the MSD. This machine is our most popular operator-fed adjustable carton sealer. The MSD is a top-of-the-line machine, designed to suit a variety of light-to-heavy duty uniform carton closure applications. Using side belt technology, the MSD will seal very narrow to wide cartons. This can seal up to 40 cartons a minute!
If you need a reliable carton erector built for high performance, the ELVS is your solution. This is a fully automatic carton erector built to continuously erect while the machine is running, preventing any unnecessary downtime. It’s also designed to have the smallest erector footprint in the industry. Capable of erecting up to 15 cartons/min. from a wide range of sizes. There are no tools required to change the size of your carton.
In sum, we want you to take advantage of all that BestPack has to offer before this tax year is over. Look at how your business needs to expand, it’s goals and your own personal goals, and see what you need to do or change to create that expansion for yourself. If it means integrating automation or personalized packaging we can help you with that. It’s our guarantee!
These solutions are in stock and ready to ship now!
Browse our full range of automatic and semi-automatic sealers and carton erectors on our product pages and connect with us today!