Please note that Pro Playgrounds and its affiliates are not tax, legal, or accounting advisors. The following material is for informational purposes only and should not be relied upon for tax, legal, or accounting advice. It is recommended to consult your own tax, legal, and accounting professionals before engaging in any transactions.
HOW PURCHASING COMMERCIAL PLAYGROUND EQUIPMENT MAY PROVIDE TAX INCENTIVES FOR BUSINESSES
If you’re considering the purchase of commercial playground equipment for your business, you might be eligible for valuable tax incentives. By taking advantage of accelerated depreciation methods, such as Section 179 deductions, you can potentially expense the entire cost of the playground in the year it was purchased, even if you financed the equipment entirely.
Section 179 is a popular provision within the IRS tax code that offers businesses the opportunity to deduct the full purchase price of qualifying equipment bought or financed during the tax year. To claim this deduction, you’ll need to complete IRS Form 4562. It’s worth noting that the maximum deduction for the year 2022 is set at $2,500,000.
One of the significant advantages of the Section 179 deduction is that it applies to both new and used playground equipment. This flexibility allows businesses to benefit from the deduction regardless of whether they purchase brand-new or previously owned equipment. However, to qualify for the deduction in 2022, it is essential to purchase or finance the equipment and begin using it within the same calendar year.
When it comes to maximizing your tax benefits, it’s crucial to understand the specific criteria for qualifying equipment. While commercial playground equipment generally falls under this category, it’s recommended to consult with tax professionals to ensure compliance with all relevant guidelines.
By investing in commercial playground equipment for your business, not only can you create an engaging and dynamic space for customers or employees, but you can also leverage tax incentives to benefit your bottom line. Make informed financial decisions and seek the guidance of tax, legal, and accounting advisors who can provide personalized advice tailored to your unique circumstances.
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