Contractors and small businesses are now privy to federally recognized expense elections that could potentially save them thousands of dollars come tax season. This is the result of a recently proposed tax code revision (Section 179) recently finalized by the Internal Revenue Service (IRS) that affects the depreciation allowance for some vans and light trucks.
Changing tax codes and their financial ramifications carry an impact felt across multiple sectors of the small business community. The new depreciation adjustment should, hopefully, promote business growth within the HVACR industry, with contractors now able to take advantage of a lowered tax liability at year's end. Applied to tax returns properly, this change can significantly benefit contractors.