New Tax Cut to Benefit Lakeland’s Small Businesses!

HVAC Qualifies as a Full First-Year Deduction

There’s never been a better time to replace tired and under-performing HVAC systems due to the tax cut that’s now available for small businesses. According to section 179 of the US tax code, under Small Business Expensing, all components of HVAC systems (Heating, Ventilation and Air-Conditioning) now qualify to be fully expensed in the first year. This is great news for Lakeland’s small businesses.

Under the previous tax code, HVAC expenses were subject to a 39-year depreciation schedule. That meant that whatever the system cost, you would need to divide the total by 39. This small amount could then be expensed for tax purposes that first year. In today’s environment, most small businesses do not stay open long enough to truly gain the full benefit of the depreciation schedule. Additionally, the small amount would do little to impact what the business owed in taxes in a given year.

HVAC Expense Example

Say your small business purchased a new commercial system for $14,000. Under the old 39-year depreciation schedule, your business could expect to deduct approximate $350 in HVAC expenses the first year.

With the updates to the tax code, the full amount paid for the HVAC system can be applied as an expense. This means that the entire $14,000 paid can be utilized as an immediate expense, which reduces a tax bill by about $5,000. Now that’s an amount that makes a difference for a small business! And, you don’t have to wait to apply the HVAC expense to your taxes – this is available the very first year you purchase the system.

 

Good News for Lakeland’s Small Businesses

The updated tax code is good news for Lakeland’s small businesses who are in need of new commercial air conditioning systems before the heat of summer sets in upon us. Acu-Temp Heating & Cooling is available to help you purchase your businesses new HVAC system and can have their expert technicians install the system at a great price.

Acu-Temp also provides excellent maintenance plans for Lakeland’s small businesses – taking the worry out of servicing and preserving your new system. For more information, contact Acu-Temp today, and take advantage of this year’s tax cut.

Call 863-682-3803 or visit www.Acu-Temp.com to speak to a representative and get the ball rolling on purchasing and installing a new air-conditioning system.