If You Haven’t Made Equipment Purchases This Year – Hurry!
As a business owner, you know how important it is to take advantage of every tax deduction you can. Section 179 can be a huge boon to you, but only if you act before December 31 of this year.
What is Section 179? It’s a fairly recent amendment to the tax code that allows business owners to deduct the full purchase price of up to $25,000 worth of qualifying equipment (almost all equipment qualifies, by the way, including PCs, laptops, smartphones, servers, printers, network switches, and off the shelf software, so make a list and check it twice). No hassles about figuring out what percentage you can deduct, just take the full value of the equipment right off the top, and save a bundle on your tax bill.
This was one of the stimulative measures put in place to help businesses help the economy as a whole, encouraging purchases and upgrades and generally stimulating demand. It’s a good deduction, but there’s no guarantee that it will survive from one year to the next. Congress can, with the wave of a pen and a single vote, end it for next year, so if you’ve got money in the budget and are looking for a way to buy needed equipment and get a nice tax break at the same time, then Section 179 is your answer. Not taking advantage of the full value of the deduction is as good as leaving money on the table, and what business owner wants to do that?
The reality is that some of the programs or changes to the tax code that are ostensibly designed to help businesses don’t actually do much of anything. Section 179 does. It actually delivers. Take advantage of it while you can. Remember, the deadline is December 31, so the time is now.