Is brand-new tech for the office on your holiday wish list? Well, you don’t have 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 subtract the full price of any qualifying hardware or application bought or leased throughout this past year. This means you don’t have to wait for vacation sales to begin, you can take action now to remain competitive and buy the equipment you need while benefiting your bottom line.
Here’s what qualifies:
Acquired, financed or leased hardware and software
Desktops, laptop computers, tablets, mobile phones
Servers, printers, routers, network switches, network security devices
Off-the-shelf software (productivity, administrative, operating systems, etc.)
Here are a few limits:
$ 500,000– Maximum overall amount you can deduct of hardware and software purchased in 2017.
$ 200,000– Maximum overall amount you can deduct of leased equipment in 2017.
$ 2M– Maximum overall amount of devices bought in 2017 eligible for full deduction.
Here’s what you have to do:
Purchase, finance or rent the technology and put it into use by midnight December 31, 2017. Additionally, your purchase must be for company use more than 50 percent of the time.
Here’s how you can benefit from the Section 179 Deduction:
Simply make the purchase and use Form 4562 to declare your tax break.
The full tax break can be declared till you’ve reached $2M in equipment or application purchases.
Previous the $2M point, the deduction decreases on a dollar-for-dollar basis and vanishes as soon as $2.5 M worth of equipment is bought.
For many scenarios, applying the tax break will be as easy as deducting the full amount of the purchase as a Section 179 expenditure; although, sometimes it can be a bit trickier. For more information about Section 179 or if you need help starting, contact us to request your complimentary, no-obligation Section 179 assessment.