Specialized Storage Solutions Explains New Corporate Tax Law - 100% Depreciation of Capital Equipment--A Perfect Combination for Business Growth and Warehouse Solutions
FAIRFIELD, N.J., Jan. 22, 2018 /PRNewswire/ -- Specialized Storage Solutions allows clients to take advantage of tax write-offs through the services of warehouse layout optimization. The new corporate tax law allows many business owners to enjoy 100% depreciation on qualifying assets in service from September 27, 2017 to December 31, 2022. Together, these provisions make the perfect combination for business growth. We'll explain why.
A depreciable asset normally amortizes over several years until it is either sold or reaches the end of its life. All the business owner has to do is purchase, install, and use it for the asset to depreciate. Such assets can be tangible (i.e. buildings, warehouse storage solutions, forklifts, prefabricated mezzanine platforms, storage racks, shelving, etc.).
With current assets, you receive an immediate tax write off for the entire expense. With depreciable assets, not so much; as mentioned, the cost is spread out over the asset's life, meaning you can claim a percentage of the asset's costs in amortization expense every year. For instance, if you bought warehouse storage assets for $20,000, and its useful life was estimated at 10 years, the amortization expense would be $2,000 each year. When receiving the full expense write off immediately - the benefit is that it can reduce your business' taxable income. This is when 100% depreciation of capital equipment is cost-effective.
For further information regarding how this new tax law can benefit your company when purchasing warehouse optimization equipment click here.
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SOURCE Specialized Storage Solutions
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