Bill C-19 Tax Deductions for New and Used Equipment Purchases
As a business owner, you're always looking for ways to make smart investments that will help you stay competitive and improve your bottom line. The Canadian government has introduced the Bill C-19 tax deduction for new or used equipment purchases, businesses impacted by the pandemic can save money and reinvest in their operations through tax relief.
The Bill C-19 tax deduction is a fantastic opportunity to do just that in 2023. This legislation allows companies to expend the full price of new or used business equipment in the first year they’re purchased, with a maximum deduction of $1,500,000 for 2023.
Let's say, for example, your company finances a new overhead crane for $100,000 in September 2023. The payments of $2,000 per month begin in October. That would equate to three months of payments made in 2023 for $6,000. Your company can then take a Bill C-19 deduction on the machine for the full amount ($100,000). At a 26% tax rate, that equates to a net tax savings of $26,000. That $26,000 comes right off the tax bill and stays in your company's bank account. The $26,000 in net tax savings minus the $6,000 paid out equals $20,000.
By acquiring the equipment, your company's 2023 is $20,000 better than it would have been had it not acquired the equipment at all. Plus, you get to use the equipment. What a great opportunity!
To take advantage of this opportunity, you must purchase and put your equipment into service during the 2023 calendar year. This means that it's important to act fast if you want to maximize your tax savings. Contact Superior Forklift today to learn more about our extensive selection of equipment and how we can help you select the right machines for your business. Our experienced team can ensure that your machines are delivered on time and that you are making the most of this opportunity to save money and invest in your business.
Superior Forklift offers a wide range of new equipment purchases, from forklifts to reach trucks, that can help you take advantage of this opportunity. But with the year coming to an end, it's important not to wait until the last minute to make your purchase.
Remember that to claim the deduction for this year, the equipment needs to be in use before the end of the year. Delivery times can also vary depending on stock volumes, so it's important to act now to ensure that you can take full advantage of the tax deductions available.
Contact us today to learn more about our selection of equipment and how we can help you save money and improve your operations through the Bill C-19 tax deductions.