It’s the Most Wonderful Time of The Year…To Buy Equipment

As kids, we tried to be really good all year long so that the big guy would bring us something shiny, new, and fun at the end of December. As adults, however, we’re not always so well behaved; we need to buy our own toys before the calendar flips. We also need to take advantage of grown-up things like tax breaks.

At this time of year, Oakmont Capital Services encourages our customers to get pre-approved for equipment financing ahead of any year-end purchases. We also want to ensure our customers take advantage of Section 179.

What is Section 179?

Section 179 (part of the IRS tax code) was created to encourage small businesses to grow by providing accelerated depreciation and tax deductions on qualifying business purchases. Section 179 allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. In other words, buy a sweeper today and get a tax break in April 2022.

With the current state of equipment availability — manufacturers experiencing low inventory —it’s important to prepare now for end-of-year purchases and buy in time to be eligible for 2021 tax deductions. Qualifying for Section 179 means the equipment must also be used in 2021.

Section 179 Benefits

If purchasing equipment (like sweepers and trucks), most businesses can benefit from Section 179. Of course, there are limitations and exceptions, so be sure to consult an accountant or tax advisor. To get an idea of how your business can potentially benefit, here’s a breakdown of the Section 179 allowances for 2021:

• Deduction Limit = $1,050,000 (up from $1,040,000 in 2020)
• Spending Cap = $2,620,000 (up from $2,590,000 in 2020)
• Bonus Depreciation = 100%

Let’s do the math to show what this looks like in reality:

• New Sweeper Cost: $100,000
• Tax Bracket: 21%
• Section 179 Deduction: $100,000
• Cost Saving on Your Purchase: $21,000
• Total Cost of Equipment: $79,000*

You can also calculate Section 179 cost savings here.

Financing Equipment Today…for Tomorrow

Saving $21,000 or more is a great deal. And couldn’t your business benefit from an upgraded, higher efficiency sweeper with lower maintenance costs? Sure. But what if it’s not the best time financially for you to purchase a sweeper (the most “wonderful” time of the year and all)? That’s where Oakmont Capital Services (OCS) can help.
At OCS, our finance professionals work with owners/operators to offer special terms, including delayed payments. This allows our customers to take advantage of Section 179 by purchasing a machine now but not making the first payment until the spring of 2022. Also, if you make a purchase this year, you don’t need to worry about supply chain shortages next year – you’ll already have your new machine in your possession.

“Purchasing a new sweeper is a big decision. But chances are that if you’re in the market for one, you’ve been thinking about it for a while,” said Michael McElroy, CLFP and Director of Business Development with Oakmont Capital Services. “Maybe it’s time to expand your business, or your current machines are breaking down or in need of repair too often. The ‘buy now, pay later’ model available with OCS is an economical option for businesses in the sweeper industry due to seasonal cycles. I’ve seen it work to the advantage of many customers.”

OCS is poised to help customers in the sweeping industry finance and own a new machine and can offer:

• No Money Down
• E-Docs + Remote Online Notary
• Structured Terms for Troubled Credit
• Standard Rate Financing
• Delayed and Seasonal Payment Options

Contact us with any year-end equipment purchase questions or to get pre-approved for a loan. Our goals are to help customers obtain equipment now, take advantage of Section 179 tax breaks, and make sure the biggest challenge for any sweeper purchase is finding a red bow big enough to wrap around the machine!

About Oakmont Capital Services

Oakmont Capital Services (OCS), founded in 1998, is a direct, independent lender providing commercial equipment financing and working capital throughout all 50 United States. Our seasoned finance professionals work across many industry verticals, including the sweeping industry, helping customers secure funding quickly and easily via a streamlined, virtual process. Our rates and terms are affordable, making OCS a reputable solution for equipment financing. The professional financing staff at Oakmont has combined experience of over 350 years in the industry and is the reliable choice for today’s financing needs. For more information, visit www.oakmontfinance.com/campaign-sweeper.

*Limitations and restrictions may apply. This information is not intended to provide tax or legal advice. Consult your tax advisor or tax attorney regarding Section 179 and the specific impact on your business. Financing based on credit approval. Not all finance agreements can take advantage of Section 179 tax incentives.

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