How do tax laws impact packaging companies at the end of the year?
I was joined by Pamela Hewett today on LinkedIn Audio to discuss how Section 179 of the IRS tax code impacts packaging equipment sellers and manufacturers.
If you are a paid member of this newsletter, you can check it out after this brief post about what the heck is section 179…according to ChatAI :)
Section 179 of the Internal Revenue Code is a tax provision that allows businesses to elect to deduct the full purchase price of qualifying property, up to a specified maximum amount, from their taxable income in the year the property is placed in service. This provision is intended to encourage businesses to invest in new equipment and other property by providing a tax incentive for doing so.
For businesses that sell packaging machinery, Section 179 may be particularly important because it can provide a significant tax benefit to their customers who purchase the machinery. By allowing businesses to deduct the full purchase price of the machinery in the year it is placed in service, Section 179 can help businesses to offset the cost of purchasing and installing new packaging machinery. This can make it more affordable for businesses to upgrade their equipment and improve their operations, which can ultimately lead to increased sales and profits.
It's worth noting that there are certain eligibility requirements and limits that apply to the Section 179 deduction. For example, the property must be new or used and must be placed in service during the tax year in which the deduction is taken. Additionally, the maximum amount of the deduction is subject to annual adjustments based on inflation. It's important for businesses to consult with a tax professional to determine whether they are eligible for the Section 179 deduction and to understand the full extent of the benefits available.
You can listen to the interview below this paid line
Keep reading with a 7-day free trial