Kick Off the New Year and Create Your Own Tax Break in 2019
We usually share this information late in the calendar year, but this year, we’ve decided to kick off 2019 with some information that you will find useful all year long as you consider financing some of your business equipment expenses.
Many thanks to our guest blogger, Steve Rose, CPA for his insight and for helping us with this month’s article. As an incentive determined to encourage businesses to invest in themselves and buy equipment, Tax Code Section 179 allows small and medium-sized businesses to deduct the full purchase of qualifying equipment and/or software financed from their gross income during the tax year.
This impacts millions of small and medium-sized businesses and applies to the purchase of essential use equipment including machinery, computers, and other tangible goods, placed in service before the year end.
Under the Tax Cuts and Jobs Act (TCJA), effective January 1, 2018, businesses are able to immediately expense more under the new tax laws either utilizing Section 179 or more favorable depreciation rules that have become available. Previously the Section 179 limits fluctuated year to year, but under TCJA, businesses are now allowed a maximum deduction of $1 million up from the previous max of $500,000.
Again, to take advantage of the incentives and the substantial tax savings, your business equipment must be put to use by year-end. Which, since it is ONLY January, gives you an entire year to start considering what you need for your business.
As you look into the year ahead, start to review what network, desktop and mobile equipment in your business may need an upgrade. Is there new software you’ve been considering integrating to help your business run smoother, or are you ready for a software upgrade on an existing platform? Do you happen to have Windows 7 or Windows Server 2008? If you do, both are hitting their “end of life” support and by January 2020 Microsoft will no longer be providing service or patches for either, so you’ll need to upgrade sooner than later to be prepared.
Do yourself a favor and this January, instead of making wide reaching, non-specific resolutions, take a detailed inventory of what your current and future technology needs are and plan for a more robust IT infrastructure that can withstand increased cyber threats and the obsolescence of previously supported applications and equipment.
If you have specific tax questions, feel free to contact our guest blogger and accountant extraordinaire Steve Rose at firstname.lastname@example.org. If you are not sure where to start with regard to your IT infrastructure updates, we can help! Give us a call today.
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, Back Up, 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 516876-8761 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.
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