Upgrade Your Business Equipment To Save On Taxes!

If you are a business owner who is looking for ways to save on taxes, you might want to consider upgrading your business equipment before the end of the year. By doing so, you can take advantage of a special tax deduction called Section 179, which allows you to deduct the full cost of qualifying equipment purchases in the year they are placed in service, instead of depreciating them over time.

What is Section 179?

Section 179 of the U.S. internal revenue code is an immediate expense deduction that business owners can take for purchases of depreciable business equipment instead of capitalizing and depreciating the asset over a period of time¹. The Section 179 deduction can be taken if the piece of equipment is purchased or financed and the full amount of the purchase price is eligible for the deduction.

What Equipment Qualifies for Section 179?

The equipment that qualifies for Section 179 must be used for business purposes more than 50% of the time and must have a determinable useful life of more than one year. The types of equipment that qualify include:

• Tangible personal property, such as computers, servers, software, printers, copiers, etc.
• Off-the-shelf computer software that is readily available for purchase by the general public and not custom-made.

What are the Benefits of Section 179 Deduction?

The benefits of taking the Section 179 deduction are:

• You can lower your taxable income and reduce your tax liability in the current year by deducting the full cost of your equipment purchases.
• You can improve your cash flow and profitability by saving on taxes and investing in new equipment that can increase your productivity and efficiency.
• You can take advantage of the latest technology and innovation by upgrading your equipment and staying competitive in your industry.

Conclusion

Section 179 is a valuable tax incentive that can help you save on taxes and upgrade your business equipment. However, it is not a one-size-fits-all solution and you need to weigh the pros and cons carefully before making any decisions. You should also consult a tax professional who can advise you on the best course of action for your specific situation.

This is not intended to be tax or legal advice. There are restrictions and limits to Section 179, so you should consult your tax professional for specific tax advice.

‍