Supply Chain Impacts on Capital Equipment Purchases
Among the best tax-advantaged investments are capital equipment purchases. Whether you are leveraging section 179, bonus depreciation, or both, businesses may be able to deduct as much as 100% of new equipment purchases for 2022. But taking advantage of these opportunities can be a bit tougher in this post-pandemic environment.
Supply chain hangover
Complete your recovery
For many, the pandemic recovery has been strong. This can mean increased profits and a great time to reinvest in your business. The alternative may see more of those hard-earned profits going to pay higher taxes. Don’t overlook opportunities still available for tax advantaged capital equipment purchases.
We are all still feeling the impact of supply chain disruptions. Certainly things are improving, but we still encounter shortages in some of the most unexpected places. Of course, these problems aren’t limited to consumer goods, as those of us in manufacturing can attest. Longer lead times are the order of the day, for reasons that include shortages of raw materials, components, as well as labor.
Whether it’s a state-of-the-art, fully automated X-ray system (our suggestion), a CNC mill, or even a new fleet vehicle, so many things can be just a little harder to come by these days. Planning your capital equipment investments in advance will help ensure your ability to take full advantage of all available tax incentives, as you must take delivery before years end to do so.