Section 179 Enhancements for 2018

Section 179 Header

With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act, the deduction limit for Section 179 increases to $1,000,000 for 2018 and beyond. The limit on equipment purchases likewise has increased to $2.5 million.

Further, the bonus depreciation is 100% and is made retroactive to 9/27/2017 and good through 2022. The bonus depreciation also now includes used equipment.

See the fully updated 2018 Section 179 Calculator to see how this tax deduction affects your company.

2017 Section 179 Tax Information (Last Year)

The Section 179 deduction is $500,000 for 2017, with a 50% bonus depreciation in place until late September (see 2018 information for change).

Click Here for the fully updated Section 179 Calculator for tax year 2017 (Last Year).

Answers to the Three Most Common Section 179 Questions

How Much Can I Save on My Taxes in 2018?
It depends on the amount of qualifying equipment and software that you purchase and put into use. See the handy Section 179 Calculator that’s fully updated for 2018, and includes any/all increases from any future legislation.

What Sort of Equipment Qualifies in 2018?
Most tangible business equipment qualifies. Click here for qualifying property.

When Do I Have to Do This By?
Section 179 for 2018 expires midnight, 12/31/2018. If you wish to deduct the full price of your equipment from your 2018 taxes and take advantage of the new higher deduction limits, it must be purchased and put into service by then.

Many businesses are finding Section 179 Qualified Financing to be an attractive option in 2018, especially since the expected Federal Discount Rate increases don’t leave much time for action. Please apply today.

More Section 179 Deduction Questions Answered

Welcome to Section179.Org, your definitive resource for all things Section 179. We’ve brought together a large amount of information regarding Section 179, and clearly and honestly discuss the various aspects of IRS §179 in plain language. This will allow you to make the best possible financial decisions for your company.

Section 179 can be extremely profitable to you, so it is to your benefit to learn as much as possible. To begin, you may have a lot of questions regarding Section 179 such as:

Check out our line-up of new forklifts or used forklifts, then contact us at 877-303-LIFT for more information or a quote.

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Five Things that Will Lower Your Overall Material Handling Costs

Reducing your costs means increasing your profits—and increasing your profits has never been more challenging than in recent years.  Our experience with hundreds of various types of operations, utilizing hundreds of pieces of equipment in more than a thousand ways, has exposed us to thousands of variations in facilities, equipment, and applications. In working with these diverse clients, we have recognized commonalities that, when implemented, resulted in lower total operating costs for materials handling most of the time. Following are five that we highly recommend:

Choose Application-Specific Equipment – In other words, “buy the right equipment for the job at hand.” We often see equipment being used in applications for which they were not designed. That results in accelerated wear, increased damage and ultimately, increased costs. Working with professionals who can survey your applications and recommend the right equipment for each job is one of the most important things you can do to decrease overall costs.  Using the proper equipment with the right specifications means efficient, productive results.

Planned Maintenance – Your fleet equipment works hard. And hard-working equipment needs proper maintenance.  Working with a professional and reputable fleet service provider that services your equipment at appropriate intervals is the key to catching small maintenance issues, before they become larger and much more expensive. In addition, well-maintained equipment operates more efficiently, experiences more up-time and results in improved operator morale.

Invest in a Robust Training ProgramOperator safety training is required by OSHA, and a daily inspection of equipment is one of OSHA’s requirements. Most companies train their operators regarding safe operation—but more often than not, the training stops there. Clients that invest in training employees to perform daily inspections, and to know what to look for, see results. If you install a process for equipment that will eventually need repair, you can ensure that unsafe equipment stays off the operating floor, and small repairs can be handled before they blossom into colossal nightmares.

Work With Single-Source Dealerships When Possible – The more work you can assign to a qualified and reliable supplier, the fewer calls you have to make. In turn, the supplier becomes more familiar with your equipment, facility and applications. Using one company that can provide a turnkey operation, from engineering to installation and maintenance, allows you to make just one call when it is needed. This leads to greater efficiencies for you. It also allows your supplier to better understand your operation and thus make logical suggestions that can reduce your costs, increase your efficiency and productivity, and ultimately improve your bottom line.

Fleet Management – Whether you do it yourself or assign responsibility to your materials handling partner, fleet management is a key part of knowing the useful economic lifespan of your equipment. And economic lifespan may vary by application within your operation. If you keep a finger on the pulse of your maintenance expenses and know when it’s time to trade in or re-lease, that process will more than pay for itself in the long run.

There are hundreds of other things you can do to minimize the total operating costs of your facility. We have addressed some of them in previous feature articles. We hope that you have found these Top Five useful.  If we can assist you further, or provide you with more information, please contact us at 877-303-LIFT.

Three Steps to Improved Productivity

Whether you’re trying to improve productivity on your assembly line in your materials handling operation or increase efficiency in your accounting department, there are a few things that you can do that transcend functional lines and apply to almost all individuals.

Empower – You hired people to do a job, let them do it! Happy, productive employees have confidence and freedom backed up by employers that support that freedom. They will find better ways to do things and yes, on occasion, make mistakes. However, empowering employees that are intelligent and hardworking, while still maintaining operating parameters or “rules” will result in employees that will make a significant impact on your operations.

Inclusiveness – You might be surprised with the input you receive if you ask. Like a golf scramble, most individuals could not shoot even par for the course. But combined, four 15 handicappers can shoot below par. Why is this and how is this possible? It’s simple, you’re taking the best of each person on each shot. Now imagine all that latent potential in your employees. Are you utilizing it?

Appreciate – The words “thanks” and “you’re doing a great job” go a long way, but how often are they heard? Like many relationships, time can cause us to take advantage of the daily efforts of our co-workers and employees. So make a point to appreciate your employee’s efforts and inputs. Mix it up, have pizza parties, send cards, make announcements, but be sure it’s sincere. Employees can smell smoke a mile away.

Each one of our employees has a lot of potential. It’s up to us to find it and put it to work for the productivity and profitability of our companies. And the best managers know how to do it and get the most out of each and every one of them. Good luck and thanks for reading!

Section 179 is Back and Better for 2016

Sec179Congress has approved much needed improvements in Section 179 which allows companies, like yours, the ability to completely deduct the purchase cost of equipment the first year it is put into service. The new limits are:

Maximum 179 Deduction for 2016: $500,000

This means for qualifying equipment purchases of up to $500,000, your company can deduct 100% of the purchase price from its taxes the very first year it is put into service.

Further, this maximum will be increased annually, with the maximum tied to inflation, at $10,000 increments.

Bonus Depreciation; Maximum Qualifying Purchases: $2,000,000

Once you exceed the maximum deduction of $500,000, bonus depreciation kicks in at 50%, until you reach the maximum qualifying purchases of $2,000,000. For example, if you spend $1,000, ooo on new equipment, you can fully deduct the first $500,000, then deduct 50% of the remaining $500,000 for a total tax deduction the first year of $750,000.  It then begins to phase out dollar for dollar until you reach $2,500,000, where it is then completely eliminated.

Bonus Depreciation will be extended through 2019. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2015, 2016 and 2017. Then bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019.

Note: The section 179 deduction applies to NEW and USED equipment whereas the bonus depreciation is only available for NEW equipment.

What that means to the purchase price of a NEW, $30,000 forklift? Assuming your company is in the 35% tax bracket, your effective cost, after deducting the entire $30,000 from your taxes, is only $19,500!

With Section 179 in effect for the remainder of 2015 and all of 2016, and beyond, there’s never been a better time to invest in new forklifts for your facility.

Note: We always suggest you consult your accountant or tax professional before you utilize section 179 for tax savings. Not all companies are structured the same and your savings may vary.

To learn more about Section 179, please visit; www.section179.org. Visit our New CLARK Forklifts showroom, our New KOMATSU Forklifts showroom to see our models. Then Contact Us for a quote, or give us a call at 877-303-LIFT.

Five Steps to Preventing Workplace Violence

Violence in the workplace often erupts without warning, and can have tragic results. Taking steps to prevent these situations can improve safety in your workplace, improve employee satisfaction and lead to increased productivity. Conversely, ignoring potential hazards can result in employee injury, even death — and legal action at considerable costs to the company.

OSHA has outlined five steps you can take to identify and prevent these violent encounters before they happen. While they are not directly related to materials handling operations, we feel these guidelines can apply to a wide variety of organizations, including your company.

Management Commitment and Employee Participation

As with any initiative, without the commitment of management and leadership, the rank-and-file of the organization will likely ignore any efforts to improve safety with regards to violence. Company leadership must be involved on a regular basis and visibly endorse the effort. This can be achieved by establishing a safety and health committee, and having leadership rotate in and out of meetings conducted by the committee.

Management must articulate a policy and establish goals for the company. Once a plan has been developed, leadership should allocate sufficient resources to accomplish the goals and uphold program performance expectations. Providing resources could entail meetings with health professionals to help identify potential hazards, creating visible signage and using other communication methods to keep workers involved in and aware of the program.

Worksite Analysis and Hazard Identification

There are probably facets of your operation that are prone to producing higher anxiety or tension among your employees. These could be actual physical conditions such as heat, cold, and hazardous areas as well as departments that demand high productivity, or even interaction with the public. Taking stock of these areas and identifying factors that are the least or most likely to create a stressful atmosphere are key to prevention.  Two steps you can take to identify and prevent violence include:

  • Conducting job hazard analysis – Management can conduct surveys of their departments to assess the potential risk of violence among employees. This not only includes internal assessments, but assessments of destinations to which your employees may travel, including specific neighborhoods, time of day, etc. Sites that expose your employees to violent behavior are often outside the walls of your facility.
  • Conduct employee surveys – Employees will often tell you if their jobs create stressful situations for them and if they feel endangered by some of their job tasks. Conduction of reviews on a regular basis will help you identify these areas and create a plan to reduce danger.

Hazard Prevention and Control

Once management has established and articulated its commitment, and evaluations have taken place, a plan to reduce potential hazards must be implemented.  This step includes:

  • Identification and evaluation of control options for workplace hazards
  • Selection of effective and feasible controls to eliminate or reduce hazards
  • Implementation of these controls
  • Follow up to confirm these controls are being used and maintained
  • Evaluate effectiveness and improve, expand or update these controls as needed

Safety and Health Training

As with any program you want to succeed, employees must be trained in order to follow the steps outlined by the company to identify and report these risks and follow up as needed.

This training could include meetings with mental health experts to help identify signs of stress in colleagues that could lead to violence. It also can include training on how to avoid violence outside your facility by taking common-sense actions (such as parking under a street lamp), what to do if an employee feels threatened and even self-defense training. Other training topics can include:

  • The company’s workplace policy on violence prevention
  • Documentation and reporting
  • Location, operation and coverage of safety devices such as alarms
  • Ways to identify and deal with hostile situations
  • A standard response plan for violent situations

Recordkeeping and Program Evaluation

Recordkeeping includes reporting procedures, what gets reported and to whom, and how these records are kept. Keeping track of both “close calls” and actual events helps you identify patterns, areas of particular concern and even certain job functions that might be creating undue stress on employees. It can help you identify areas outside your facility that present a danger to your employees, such as areas of town they serve.

OSHA Log of Work-Related Injuries and Illnesses (OSHA Form 300) can help you organize information not only for reporting to your proper internal sources but also for reporting to OSHA if necessary. As of January 2015, all employers must report:

  • All work-related fatalities within 8 hours
  • All work-related inpatient hospitalizations, all amputations and all losses of an eye within 24 hours

Injuries sustained as a result of assault must be entered on the log if they meet OSHA’s recording criteria (CFR Part 1904, revised 2014).

Keeping track helps you improve your program, improve employee safety and ensure your employees are operating in a safe and productive work environment.

We hope this summary is helpful to you in establishing your own workplace violence prevention plan. To learn more about what you can do, download the complete “Guidelines for Preventing Workplace Violence) by OSHA, HERE. While it was prepared for healthcare and social service workers, the overall content of this guide can assist any company, big or small, in achieving a safer work environment for all.