Section 179: Technology Investment Deductions - Savings that Bears Repeating
Wouldn’t it be nice to be able to write off the entire cost of your computer equipment and software purchased?
Well you can! Here is the skinny on IRS Section 179.
Under the Internal Revenue Code (IRC) Section 179 you are able to deduct the entire cost of computers and software purchased and put into use before December 31, 2015 up to $25,000. This deduction is specifically intended for small businesses and can reduce the overall costs of your technology. There is a possibility the amount of the deduction will be increased by Congress before the end of 2015 as Congress has in the past few years.
Purchases made throughout the calendar year qualify for the deduction. There are some limits but new and used equipment typically qualifies. This equipment can include:
• Workstations, Laptops, Tablets, Smartphones
• Servers, Server upgrades, Printers
• Routers, Network switches, Network security appliances
• Windows 8, Windows Server 2012, Microsoft Office, Microsoft Dynamics
• Other off-the-shelf software
You can check out the Government’s Section 179 website for more details and call your accountant today to make sure you are taking advantage of this tax savings.
The 411 on Section 179
Section 179 is one of the few incentives that actually helps stimulate small businesses by encouraging investment in technology and providing tax relief for doing so. Millions of small businesses are taking advantage of this and realizing the benefits.
The tax code isn’t mysterious. Basically it allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. Qualifying purchases add up and when all is said and done, you can deduct the full purchase price (up to $25,000) from your gross income.
Sometimes the only thing standing between your company and bigger business opportunities is the technology to help you deliver more streamlined solutions and this incentive encourages businesses to invest in themselves.
Typically businesses get to write off certain purchases over time through depreciation but while that is good, most business owners would see a better value with the ability to write off the entire purchase in the same calendar year that they make the expenditure. That’s where Section 179 motivates business owners with a tax incentive that really is a win win for all.