Wouldn’t it be nice to be able to write off the entire cost of your computer equipment and software purchased?
Well you can!
Under the Internal Revenue Code (IRC) Section 179 you can deduct the entire cost of computers and software purchased and put into use before December 31, 2019. The deduction limit for Section 179 is $1,000,000 for 2019 and beyond, while the limit on equipment purchases remains at $2.5 million. Further, the bonus depreciation is 100% and has been made retroactive to 9/27/2017. It is good through 2022. The bonus depreciation also now includes used equipment.
Purchases made throughout the calendar year qualify for the deduction. There are some limits but new and used equipment typically qualifies. Please keep in mind that to qualify for the Section 179 Deduction, the equipment listed below must be purchased and put into use between January 1 and December 31 of the tax year you are claiming. This equipment can include:
• Workstations, Laptops, Tablets, Smartphones
• Servers, Server upgrades, Printers
• Routers, Network switches, Network security appliances
• Off the shelf software
• Equipment (machines purchased for business use)
• Office furniture
• Office equipment
• Tangible personal property used in business
• Business vehicles with a gross vehicle weight in excess of 6,000 lbs.
• Property attached to your building that is not a structural component of the building
(i.e.: a printing press, large manufacturing tools and equipment)
• Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes) and certain improvements to existing non-residential buildings: fire suppression, alarms and security systems, HVAC, and roofing.Please note – the above equipment qualifies whether new or used (but must be new to you), and regardless of whether it was purchased outright, leased, or financed.
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Section 179 can change each year without notice (Section 179 has even changed mid-year), so it benefits you to take advantage of this generous tax code while it’s available.
Section 179 offers small businesses a great opportunity to maximize purchasing power. In addition, recent changes have provided the small business owner with generous new (and higher) deduction limits. Most of the equipment your business will purchase, finance or lease qualifies for the deduction so make sure you do your homework to verify that your company is leveraging the Section 179 Deduction this year.
For more info check out www.section179.org/ About Tech 2020 Solutions
Tech 2020 Solutions offers complete turn-key solutions for the technologies that drive your business, stores and secures your data and helps you communicate in and outside of your company.
Offering offer multiple levels of on-site and remote support, monitoring and maintenance for your data, IT, phones and peripheral equipment needs including:
general IT Support and Services, Cloud Storage and Applications, Network Security, Backup, Mobile Solutions, VoIP Phone Systems, Unified Communications, Business Continuity, Disaster Recovery and other Scalable Technologies. Visit www.Tech2020Solutions.com to learn more about Tech 2020 Solutions, Inc. or call 516-876-8761 or email info@Tech2020solutions.com.
Power Up with John Hassler is a blog distributed by Tech 2020 Solutions, Inc. and written by John Hassler, President and Founder of the company. To reach John, contact him at 516.876.8761 or via email at news@Tech2020Solutions.com. Connect on Linked In and Facebook.