As we approach the end of the year, many businesses are faced with deciding what to do with their budget surplus. After carefully spending all year, businesses need to make their budget projection or could lose out on that money in the following year.
With that in mind, US Tax Code Section 179 was implemented to solve that problem. Intended specifically for small businesses, the Section 179 deduction can have the effect of reducing the cost of technology purchased by as much as $25,000.
Examples of items that may qualify for the deduction:
- Workstations, Laptops, Tablets, Smartphones
- Servers, Server upgrades, Printers
- Unified Communication and Phone systems
- Routers, Network switches, Network security appliances
- Other off-the-shelf software
Section 179 Explained
Basically, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of certain equipment and/or software purchased during that tax year. This means that if you buy (or rent) a piece of qualifying hardware, you are allowed to deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
Section 179 can change each year without notice so it benefits you to take advantage of this generous tax code while it’s available. 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.
If you would like to take advantage of this highly valuable deduction, call Stamm Technologies at 414-263-4260 or email at firstname.lastname@example.org.