It’s tax season and drilling operations are poring over 2018 tax profits and losses. While making a new capital purchases like a new drilling rig or drilling equipment upgrades may not be foremost in your mind right now, it should be.
Tax time is ideal for exploring ways to benefit your bottom line throughout the year to come, especially with equipment purchases in the drilling industry. Custom drilling rig systems are not built to sit as inventory on a lot, waiting to be purchased and driven away. With lead times that often stretch months, drilling rigs are one of the few pieces of equipment that are built to order, based on the needs of the customer and their drilling environment. Ordering and building a new water well drilling rig or geotechnical sampling equipment needs be planned ahead of time, not done as “last-minute savings” at the end of the year.
With capital purchases, the tax rules stipulate that the equipment must not only be purchased during the calendar year, but you must also take possession of the equipment during that year. You will need time to dial in the options that will best benefit your drilling operation, as well as allowing for the lead time necessary to design, create, test, deliver and train drilling crews on your new rig.
You will already be in front of your accounting team to complete 2018 taxes. Why not take advantage of their expertise and ask if a new equipment purchase would position you for a tax advantage for 2019? Not only is this an opportunity to save money, but you can also update your fleet through a trade-in. SIMCO is always looking for good used equipment. When you trade your used equipment, you can earn a discount on the purchase price of a new rig and benefit from the tax incentives of taking possession of a capital purchase.
Don’t wait! Now is the perfect time to get started on saving money next year! Contact the Sales Team at SIMCO to learn more about your new drilling equipment options and future tax savings by calling 800-338-9925 today.