Are you losing customers to competitors because of lagging technology? It might not seem like there’s any room in the budget for an upgrade, but there is a way to adopt the newest technology solutions without getting crushed by upfront costs – Section 179.
Here’s the scoop on Section 179:
The Section 179 tax deduction allows you to deduct the full price of any qualifying equipment or software purchased or leased during this past year, instead of depreciating it over a period of several years. This means you don’t have to wait for holiday sales to kick in – you can make your move now to stay competitive and purchase the equipment you need while benefiting your bottom line.
Here’s what qualifies:
- Purchased, financed or leased equipment
- Workstations, laptops, tablets, smartphones
- Servers and printers, routers, network switches, network security appliances
- Off-the-shelf software (productive, anti-virus, administrative, etc.)
- Other business expenses like machinery, company vehicles and improvements to nonresidential real property
Here are a few limits:
The maximum total amount you can write off in 2018 is $1 million. And, the maximum total amount of equipment purchased in 2018 eligible for a full deduction is $2.5 million. This cap makes it an ideal tax incentive for small businesses. Even if you are declaring a net loss for the year, you may be qualified to deduct some of the cost of new equipment and carry forward the loss.
Here’s what you need to do:
Purchase, finance or lease the technology and put it into use by midnight on December 31, 2018. And, your purchase must be for business use more than 50 percent of the time.
Here’s how you can take advantage of the Section 179 Deduction:
You’ll use form 4562 to claim your deduction. The full deduction can be claimed until you’ve reached the allotted $2.5 million in equipment and software purchases. Past that point, the deduction decreases on a dollar for dollar basis until it disappears at $3.5 million. If you have questions about how to qualify, consult your accountant and visit section179.com for additional information.
Here’s how you benefit:
- Upgrade tech according to its lifecycle
- Minimize tech-related downtime
- Give your customers a positive UX
- Improve your ROI
- Upgrade tech when it breaks
- Experience frequent downtime
- Lose customers frustrated with poor UX
- Struggle with ROI
Is it time to reinforce your business with the latest technology solutions? We want to help. Contact us today to learn which software and hardware investments will benefit your business right now.