When a brand new employee joins your business, chances are they are given a computer that has actually been used many times before. It’s not uncommon for organizations to try to stretch their computer system capabilities over the course of a decade, and as the dust settles in, it’s not a surprise when computers “unexpectedly” quit working.
We see technology as a way to make life simpler, but when your tech starts to fail, it steadily creates new troubles and ultimately costs you more money in downtime and lost performance than it would cost to buy new equipment.
Here’s the bright side: The federal government understands this desire to save money by updating your equipment less often–and they’re combating it with Section 179.
What’s the Section 179 Tax Deduction? Well, rather than waiting for your equipment to fail on you, Section 179 lets you subtract the full cost of any permitted equipment or software purchased or rented during the year. This includes:
Bought, financed or rented equipment
Desktops, laptops, tablets, mobile phones
Servers, printers, routers, network switches, network security devices
Off-the-shelf software (productivity, administrative, operating systems, etc.)
Now, there’s no need to put off buying or leasing technology when you can write-off the full amount. Businesses that buy, finance or lease less than $2M in new or pre-owned businesses technology qualify. You just have to make certain the equipment and software are placed into use by December 31, 2017.
For most situations, applying the tax break will be as simple as subtracting the full amount of the purchase as a Section 179 expenditure; although, in some cases it can be a bit harder. To learn more about Section 179 or if you require help getting started, contact us to request your free, no-obligation Section 179 assessment.