When a new employee joins your business, chances are they are offered a laptop that has actually been used many times in the past. It’s not unusual for organizations to attempt to stretch their computer abilities during a decade, and as the dust settles in, it’s not a surprise when computers “all of a sudden” quit working.
We see technology as a way to make life simpler, but when your tech starts to fail, it slowly produces new issues and ultimately costs you more money in downtime and lack of efficiency than it would cost to purchase new devices.
Here’s the good news: The US government understands this desire to save dollars by upgrading your equipment less frequently–and they’re combating it with Section 179.
What’s the Section 179 Tax Deduction? Well, instead of waiting for your devices to fall apart on you, Section 179 lets you deduct the full cost of any qualifying equipment or software bought or leased throughout the year. This includes:
Bought, financed or leased equipment
Workstations, 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 purchasing or leasing equipment when you can write-off the total. Organizations that purchase, finance or lease less than $2M in new or pre-owned businesses technology qualify. You simply have to make certain the equipment and software are deployed by December 31, 2017.
For the majority of scenarios, applying the tax break will be as easy as deducting the total of the purchase as a Section 179 expenditure; although, in some cases it can be a bit more difficult. For more details about Section 179 or if you require assistance getting started, contact us to request your free, no-obligation Section 179 consultation.