Is brand-new tech for the workplace on your holiday to-do list? Well, you do not need to wait–you’ll be rejoicing this tax season thanks to Section 179.
What is the Section 179 Tax Deduction?
Area 179 allows you to subtract the full rate of any eligiblepermitted equipment or software purchased or rented throughout this past year. This means you do not need to wait for holiday sales to kick in, you can take action now to remain competitive and purchase the hardware and software you require while benefiting your bottom line.
Here’s exactly what is allowed:
Purchased, financed or rented hardware and software
Desktops, laptops, tablets, smartphones
Servers, printers, routers, network switches, network security devices
Off-the-shelf software (productivity, administrative, operating systems, etc.)
Here are a couple of limitations:
$ 500,000– Maximum overall quantity you can write off of hardware and software purchased in 2017.
$ 200,000– Maximum overall quantity you can write off of rented equipment in 2017.
$ 2M– Maximum overall quantity of devices acquired in 2017 eligible for full deduction.
Here’s exactly what you have to do:
Purchase, finance or lease the technology and put it into use by midnight December 31, 2017. Additionally, your purchase should be for company use more than 50 percent of the time.
Here’s how you can benefit from the Section 179 Deduction:
Merely make the purchase and use Form 4562 to declare your deduction.
The full deduction can be claimed till you’ve reached $2M in equipment or software purchases.
Past the $2M point, the reduction decreases on a dollar-for-dollar basis and disappears as soon as $2.5 M worth of equipment is acquired.
For the majority of situations, applying the tax break will be as easy as subtracting the total of the purchase as a Section 179 expenditure; although, sometimes it can be a bit harder. To find out more about Section 179 or if you require assistance getting started, contact us to request your free, no-obligation Section 179 consultation.