Wednesday, December 28, 2011

Forklifts for Sale - Tax Breaks To Shrink in 2012

Two generous tax breaks small-business owners received during the recession are going to shrink dramatically in 2012. That makes year-end tax planning more important than usual.

The changes affect the deductions for purchases of equipment, such as a forklift. One is called the Section 179 deduction, named for a provision of the Internal Revenue Code. The other is called bonus depreciation. Congress approved the breaks to make it easier for small businesses to expand and hire workers. Although the economy is still slow, the breaks are being scaled back.

Ed Smith, a tax partner at the accounting and consulting firm BDO in Boston, says he's talking with clients about whether it makes sense to buy equipment before the changes take effect.
"Understand that we're not going to have this deduction in the next couple of years," he said.
The Section 179 deduction allows a small business to deduct upfront rather than depreciate the cost of equipment, such as computers, vehicles, machines in manufacturing, office furniture and sheds.
The deduction for 2011 is $500,000. In 2012, it will drop to $125,000. And in 2013, it's expected to fall to $25,000 — the amount it was back in 2002.
Bonus depreciation allows small businesses to take a deduction for equipment expenses beyond the amount allowed under Section 179. For 2011, the bonus depreciation is 100 percent. The maximum that can be deducted under the two deductions combined is $2 million. In 2012, bonus depreciation drops to 50 percent.
Under normal depreciation rules, the cost of equipment is deducted over a number of years according to a formula set by the IRS. So the Section 179 and bonus depreciation provisions have given small businesses accelerated tax savings.
You can learn more about the deductions in IRS Publication 946, "How to Depreciate Property." It goes into detail about the deductions and the regulations that govern how they can be taken. For example, the Section 179 deduction can't be used for your new heating and air conditioning unit. But that equipment can be depreciated.
It's also a good idea to discuss your plans with an accountant or tax attorney.
Changes in the tax law shouldn't be the biggest reason for buying equipment. Deductions aren't worth it if you're wasting your money on something your business doesn't need. But if you've been debating whether to buy a forklift or install manufacturing equipment in 2011 or in 2012, it might make sense to move the purchase into this year. If you can get a better price than you would next year, that's another reason to buy now.
A big caveat: The forklift has to be delivered by Dec. 31. You can't order a new server or drill press this year, have it delivered in January and still take the deduction. You have to be able to use it — which means it needs to be installed — by the end of the year. However, it's OK if you don't pay for the equipment until next year, or if you're going to take several years to pay it off.
Something else to think about is whether you want to take advantage of these deductions now. You're not required to use Section 179 and bonus depreciation. In fact, you need to elect to take a Section 179 deduction when you file IRS Form 4562, "Depreciation and Amortization."
Depending on what your profits look like this year, and what they're likely to be in the coming years, you might prefer to use regular depreciation. So you might want to postpone your purchase until next year.
Smith says the money owners will save on their taxes from Section 179 and bonus depreciation can help them pay for the equipment they've bought. But using these deductions will eliminate any tax savings you would have had from depreciating equipment over time. Smith points out that when equipment is depreciated under regular rules, the tax savings from that can be used to cover principal payments if the equipment was financed. And the interest on financing is deductible.
Again, it's a good idea to consult a tax professional to decide which approach makes the most sense for your business.

Source: Joyce M. Rosenberg  The Associated Press

Thursday, December 22, 2011

Forklift Service Los Angeles - Happy Holidays

The holiday season is upon us and we take time to reflect on all the things for which we are grateful.  Our relationship with our customers is one that we treasure.  So all of us here at Hyundai Forklift of Southern California would like to take this opportunity to thank you for letting us serve you in all your forklift needs and giving us the opportunity to get to know you.  We are looking forward to doing business with you next year.  May the joy, peace and happiness of this holiday season be with you throughout the upcoming year.

Las fiestas han llegado y nos tomamos un tiempo para reflexionar en todas las cosas por las que estamos agradecidos.  La relacion con nuestros clientes es algo que realmente apreciamos.  Todos aqui en Hyundai Forklift of Southern California quisieramos aprovechar esta oportunidad para decirles gracias por permitirnos servirlos con todas sus necesidades y darnos la oportunidad de conocerlos.  Esperamos continuar nuestra relacion con ustedes en este proximo año.  Que la alegría, paz y felicidad de estas fiestas esten con ustedes ahora y los años venideros.

Ngayong panahon ng kapaskuhan, aming inaa-alala ang mga bagay na pasasalamatan. Ang pakikitungo namin sa mga cliente ang isang bagay na pangangalagahan. Kaya’t kaming lahat dito sa Hyundai Forklift of Southern California ay tauspusong nagpapasalamat sa ibinigay ninyong pagkakataon na serbisyuhan kayo sa inyong pangangailangan sa forklift at ng makilala kayo. Inaasahan namin ang pagtuloy na pagsisilbi  sa inyo itong pagdating ng bagong taon. Naway mapa-sa inyo ang kapayapaan, katahimikan at kasiyahan nitong kapaskuhan at ng buong bagon taon.    

Tuesday, December 13, 2011

Forklift Repairs Los Angeles - Where Do Labor Rates Come From

Every day we find that our potential customers are questioning what we charge for our forklift service.  Every day we try to make the response clearer and more meaningful. 

Kyle Thill of Toyota-Lift of Minnesota produces a blog for his company that regularly has some really good insights and helpful posts.  Today he addresses this issue in his post, Mommy where do labor rates come.  Please follow the link below to his post and enjoy

Friday, December 9, 2011

Forklift Safety - Knowing your Forklifts Capacity

What is the maximum carrying capacity of my forklift to a given lift height?

The load carrying capacity of a forklift is indicated on the capacity data plate or name plate and should be found affixed to the forklift in a prominent location in view of the operator. OSHA safety regulations state that a forklift must have a legible capacity plate. This data plate will indicate the maximum lifting capacity of the machine to the full extension height of the mast and a specified load center for a given configuration. If the forklift configuration or the load characteristics have changed since the data plate was issued, if the data plate is unreadable, or if there are special new load handling conditions, a capacity plate should be changed or added to reflect the relevant forklift, attachment and load conditions. This is extremely important because a warehouse manager and a trained forklift operator will first look to this data plate and rely on this information for the maximum load that can be safely handled with the machine.

There are a multitude of factors that affect the lifting capacity of a forklift and these parameters, which are indicated on the capacity data plate, include:

1.Make or Manufacturer
3.Power Source
4.Battery Weight (for electrics)
5.Tire Type
6.Tire Size
7.Mast Lift Height
8.Mast Carriage Type
9.Attachment(s) Type
10.Attachment(s) model
11.Load Center of Gravity (CG or LC)

If any of these parameters are changed, particularly the attachments on the forklift carriage or the load center, the capacity plate should be checked for accuracy to ensure safe load handling.

Forklift Attachments Change the Capacity of the Lift Truck

A forklift attachment includes anything that is attached to the front carriage of a forklift or is attached to an attachment on the forklift. A typical forklift attachment configuration might include a hang-on side shifter and two forks. In this case, if the forks are removed and longer forks are added, the capacity of the machine could be drastically reduced. Or if the forklift is used to pick up a fork mounted attachment, such as a drum handler or fork extensions, then a capacity data plate must be changed or added to reflect the new configuration. OSHA safety regulations state that a forklift must have a legible capacity plate to reflect any attachment used on the lift.

Capacity Decreases the Higher the Forklift Lifts

Lift height or maximum fork height (MFH) has a significant effect on a forklift’s load carrying capacity, and forklifts with high masts will have a greater carrying capacity at lower lift heights than at the maximum lift height. For this reason forklifts with very high masts may have a dual capacity rating on the data plate; a maximum capacity up to a mid level lift height, and a lower capacity rating at the maximum lift height. This allows the forklift operator to work with heavier loads at low heights, i.e. loading and unloading trucks, cross-docking, etc., while using the same forklift to put away lighter loads to high storage locations.

If the Length of the Load is Longer, Lifting Capacity is Reduced

Because a forklift is using leverage to lift a load, any condition that adds weight to the front of the forklift and causes the load center (LC or CG) of the load to be moved further away from the forklift will contribute to a reduction in the residual carrying capacity of the machine. Attachments can cause these reductions, as well as the dimensions of the load and the load handling conditions. Load center typically refers to the horizontal distance to the load CG and is typically half the length of the load for symmetrical objects. To illustrate how attachments and load CG’s can affect residual carrying capacity, consider for example that a particular forklift with only forks on the carriage is rated at 5,000 lb capacity @ 24” load center on the data plate. This forklift will only be rated at 1,270 lb when equipped with a particular 8 foot long fork mounted jib boom because the boom adds weight and moves the load center out to 96 inches. In this case the forklift may employ a dual load center capacity rating on the capacity plate indicating a greater lifting capacity (2,750 lb) at a 4 foot load center and a lower capacity (1,270 lb) at the 8 foot load center.

Load Center also Effects Carrying Capacity

Small changes in load center can also greatly affect the carrying capacity. Consider the capacity of the same 5,000 lb forklift with 48” forks and rated at a 24” load center, drops to 3,660 lbs when 72” fork extensions are employed to lift a 6 foot long load.

Where to Check Your Lift Capacity

The main thing to consider is that every forklift has a legible capacity plate that accurately reflects the attachment configuration being used at the correct load center for the load being lifted and contact Professional Forklift Engineering Services at to check your lift capacity and get a professional engineering (PE) certified capacity rating plate on your forklift today.

This is a great article written by Edward Brown, Editor of They have many great articles on warhousing and lift trucks.

Monday, December 5, 2011

Propane Forklifts Can Solve Your Gas Pains

Do you have gas pains?  The pains that come from handling gas for your forklift.  Unlike the man in this picture, handling gas can be a real problem for most people.  Unless you are a professional,  it is highly recommended you not try this at home or at work or anywhere else on this planet.
The process of handling gas for your forklift is not only dangerous but it’s also a dirty and unpleasant process.  Gasoline powered forklifts are well known for emitting large amounts of noxious fumes, so ventilation is a must.   Working with gas can be a real pain…well, you know where.

The solution to these issues is a forklift that runs on propane. You can purchase your forklift already outfitted with a propane fuel system or have your gasoline powered forklift retrofitted.  Any forklift that can run on gasoline can also run on propane. 

LPG is liquefied petroleum gas commonly known as propane, a combustible hydrocarbon based fuel. It comes from the refining of crude oil and natural gas. At normal pressure and temperatures above -44F Propane remains in it's gaseous form. At lower temperatures and/or higher pressures propane will become a liquid. Propane is colorless and odorless. For safety reasons,  propane is required to be distinctly odorized  so that  the presence of gas in air is easily detectable. This is achieved by adding 1.0 lbs of ethyl mercaptan, or 1.0 lbs of thiophane, or 1.4 lbs of amyl mercaptan per 10,000 of liquefied petroleum gas. There are currently three grades of propane available, HD5 for internal combustion engines, commercial propane and commercial propane butane mix for other uses.

How does a propane forklift system work?  A typical LPG system is illustrated to the right. The fuel is transported in an 8 lbs fuel tank.  Fuel tanks are removable from the forklift and can be filled on site or at an LPG retailer.  In this system, liquid fuel exits the storage tank by a tube mounted inside the supply tank. The tube is configured so that it is immersed in the liquid fuel at all times. The fuel then is routed to the first regulator. This regulator reduces pressure to 4 to 15 psi.  The liquid fuel exits the regulator as half vapor and half liquid. The vapor and liquid combination then is heated, causing it to become all vapor. The second regulator reduces the pressure of the gas to atmospheric pressure. The gas then enters a carburetor or mixing valve and then enters the engine cylinders.

So next time you are attempting to balance the red gasoline can or looking for a funel to use when pouring the gas into your forklift, you  might want to think about converting to a propane forklift sometime soon.   If you have questions about how this process is done or what it may cost, contact your forklift dealer for further details.