Is new technology for the workplace on your holiday to-do list? Well, you do not need to wait–you’ll be jumping for joy this tax season thanks to Section 179.
Exactly what is the Section 179 Tax Deduction?
Area 179 allows you to deduct the full price of any eligiblepermitted hardware or application bought or rented during this previous year. This means you do not need to wait on holiday sales to begin, you can take action now to remain competitive and get the hardware and software you need while benefiting your bottom line.
Here’s what qualifies:
Bought, financed or rented hardware and software
Workstations, laptops, tablets, smartphones
Servers, printers, routers, network switches, network security devices
Off-the-shelf applications (productivity, administrative, operating systems, etc.)
Here are a few limitations:
$ 500,000– Maximum overall quantity you can deduct of hardware and software purchased in 2017.
$ 200,000– Maximum overall quantity you can deduct of rented equipment in 2017.
$ 2M– Maximum overall quantity of equipment acquired in 2017 eligible for full deduction.
Here’s what you need to do:
Buy, finance or lease the equipment and put it into use by midnight December 31, 2017. Additionally, your purchase should be for business utilize more than 50 percent of the time.
Here’s how you can make the most of the Section 179 Deduction:
Simply make the purchase and utilize Form 4562 to claim your tax break.
The full tax break can be claimed up until you’ve reached $2M in hardware or application purchases.
Previous the $2M point, the reduction decreases on a dollar-for-dollar basis and vanishes as soon as $2.5 M worth of software and hardware is acquired.
For most scenarios, applying the tax break will be as easy as deducting the total of the purchase as a Section 179 expense; although, in some cases it can be a bit trickier. To find out more about Section 179 or if you need help getting started, contact us to request your complimentary, no-obligation Section 179 assessment.