Just around the corner is 2023 and whether you’re selling or buying, now is the time to evaluate your equipment needs and make decisions about the coming year. Whether you have idle assets, items that need to be replaced, or you’re looking to take advantage of tax benefits by replacing equipment, we have the solutions, expertise, and the buyers. Turn your equipment into cash before the end of the year!
Tax advantages for buyers in the U.S. and Canada is also good news for sellers*
U.S. buyers looking to capture the tax savings Section 179 offers will be motivated to complete their purchases by the end of 2022, meaning strong demand and strong pricing for used equipment. The Section 179 deduction limit for 2022 has been raised to $1,080,000. Buyers can deduct the full cost of equipment (either new or used), up to $1,080,000, from 2022’s taxable business income. Here are some key points to know about Section 179. Equipment must:
- Be within the specified dollar limits of Section 179.
For 2022, the deduction limit is US$1,080,000 if you purchase $2.7 million or less of trucks or equipment. - Be placed into service in the same year the deduction is being taken.
For 2022, buyers must purchase the equipment AND start using it for their business by December 31, 2022. - Purchased and used for business.
Simply put, it’s got to be used for the buyer’s business. A motorcycle probably won’t qualify, but a dozer bought at auction most likely will.
Check out this handy Section 179 calculator to find out how much you can save.
Canadian buyers looking to capture tax savings can take advantage of the Accelerated Investment Incentive, where equipment buyers’ purchases can be applied against earnings on a company’s taxes. Part of this initiative is Full Expensing for Manufacturers and Processors – allowing businesses to immediately write off the full cost of machinery and equipment used for the manufacturing or processing of goods.
Combining PurchaseFlex FinancingTM with Section 179 could save you big
When it comes to financing and leasing, this is where Section 179 gets really powerful: the amount you save in taxes by deducting the full purchase price may end up being larger than the sum of loan or lease payments you make this year.That’s a direct, positive impact on your business’s profitability for 2022. Before making your final purchases of the year, talk with Ritchie Bros. Financial Services about your purchasing needs and let them know you’re interested in making a Section 179 deduction this year. You may be eligible for fast, no-obligation PurchaseFlex FinancingTMpre-approval** and the details needed to review with your tax advisor*.
Take advantage of everything Ritchie Bros. offers:
- Multiple buying & selling options including:
- Dozens of upcoming live auctions before the end of the year
- Weekly online auctions
- Our 24/7 online marketplace
- Easy access to our global buyer audience
- Minimal investment of your time
- Maximum returns for your equipment
We’re ready and waiting to help you sell before the end of the year – contact us today!