Scream for Section 179 Tax Deduction
While Halloween has passed, the scariest season for businesses has begun to send shivers down their spines—tax season. But don’t let the doom and gloom of tax season get you down, Section 179 might just be the trick that lifts you up.
What is the Section 179 Tax Deduction?
Instead of gradually depreciating technology over several years, Section 179 allows you to deduct the full price of any qualifying equipment or software purchased or leased during the year. It’s meant to encourage businesses to stay competitive and move forward by purchasing the equipment they need while benefiting their bottom line.
- Purchased, financed or leased purchases
- Workstations, laptops, tablets, smartphones
- Servers and printers, routers, network switches, network security appliances
- Software (productive, antivirus, administrative, etc.)
What do I need to do?
- Must be purchased, financed or leased and put into use by midnight Dec. 31, 2017
- Must be purchased for business use for more than 50% of the time
What are my limits?
- $500,000—Maximum total amount you can write off in 2017
- $2M—Maximum total amount of equipment purchased in 2017 eligible for full deduction
How can I take advantage of the Section 179 Deduction?
- Simply make the purchase and use Form 4562 to claim your deduction
- The full deduction can be claimed until you’ve reached $2M in equipment or software purchases
- Past the $2M point, the deduction decreases on a dollar for dollar basis and disappears once $2.5M worth of equipment is purchased
Depreciation is often one of the most complex items a company has to deal with. Our goal, along with your tax accountant, is to make small business taxes as simple for you as possible. For more information about Section 179 or if you need help getting started, contact us to request your free, no-obligation tax break consultation.