Take advantage of a prime time to sell before the end of 2020 – with help from Ritchie Bros.
With 2021 just around the corner, you might be thinking of generating cash for your business or adjusting your equipment fleet. And if you need to sell equipment and trucks to do this, now is the time, while demand is high and before your assets are another year older – and depreciate further.
At Ritchie Bros., our bidder registration numbers are up around the globe, our PriorityBid feature is providing longer bidding windows and greater competition, and our pool of pre-approved financed customers continues to grow. Plus, there are possible tax advantages to selling before the year is over.
We can help you sell when, where and how you want before the end of 2020:
Tax advantages in Canada and the U.S.; buyers should be motivated.
With tax advantages in Canada and the U.S., it’s good news for buyers and for sellers on both sides of the border. If you’re thinking of selling, this could be the right time. U.S. buyers looking to capture the tax savings Section 179 offers will be motivated to complete their purchases by the end of 2020, meaning a likely increase in demand and strong pricing for used equipment. And with the Accelerated Investment Incentive offered in Canada, equipment buyers’ purchases can be applied against earnings on a company’s taxes – making this a good time to buy in Canada.
What is the Section 179 deduction?
If you’re a U.S.-based business, you might know about a U.S. tax deduction called Section 179. The deduction limit remains $1,000,000 for 2020. it applies to the purchase of used equipment, too.
Section 179 of the IRS Tax Code lets a business deduct the full purchase price full purchase price of qualifying equipment within the year it’s purchased instead of writing off small amounts over many years. Here are some key points to know about Section 179. Equipment must:
- Be within the specified dollar limits of Section 179. For 2020, the deduction limit is US$1,000,000 if you purchase $2.5 million or less of trucks or equipment.
- Be placed into service in the same year the deduction is being taken. For 2020, buyers must purchase the equipment AND start using it for their business by December 31, 2020.
- Purchased and used for business. Simply put, it’s got to be used for the buyer’s business. A motorcycle probably won’t qualify, but a dozer bought at auction most likely will.
Check out this handy Section 179 calculator to find out how much you can save.
Section 179 deductions can be used for both new and used equipment. That’s what makes this deduction a perfect match for buyers looking to pick up used trucks and equipment at a Ritchie Bros. auction, and sellers looking to capitalize on the presumed increased demand*.
Why is it a good time to sell?
Due to COVID-19 we shifted entirely to holding our auctions online. Despite the pandemic, online bidder attendance & selling prices are strong across the board. In fact, we’re seeing more bidders at our auctions than ever before! Don’t miss out on multiple opportunities to sell in November and December. Whether in our live online auctions, weekly events, or our everyday online marketplace, get the results you need from Ritchie Bros.
Don’t miss your opportunity – contact us today to sell before the end of 2020!
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* Ritchie Bros. Auctioneers is not a tax advisor. To learn specifically how your business may benefit from these tax law changes, please consult with your accountant or tax advisor. Nothing contained herein is meant to be, nor should it be considered, a guarantee as to price performance at any Ritchie Bros. unreserved auction.