Is new technology for the office on your holiday wish list? Well, you won’t have to wait, you’ll be jumping for joy this tax season thanks to Section 179.
What is the Section 179 tax Deduction?
Section 179 allows you to deduct the full price of any qualifying equipment or software purchased or leased during this past year. This means you don’t have to wait for holiday sales to kick in, you can make your move now to stay competitive and purchase the equipment you need while benefiting your bottom line.
Here’s what qualifies:
- Purchased, financed or leased purchases
- Workstations, laptops, tablets, smartphones
- Servers and printers, routers, network switches, network security appliances
- Software (productive, antivirus, administrative, etc.)
Here are a few limits:
The maximum total amount you can write off in 2017 is $500,000. And, the maximum total amount of equipment purchased in 2017 eligible for a full deduction is $2 million.
Here’s what you need to do:
Purchase, finance or lease the technology and put it into use by midnight December 31, 2017. And, your purchase must be for business use more than 50 percent of the time.
Here’s how you can take advantage of the Section 179 Deduction:
You’ll use form 4562 to claim your deduction. The full deduction can be claimed until you’ve reached the allotted $2 million in equipment and software purchases. Past that point, the deduction decreases on a dollar for dollar basis.
For most situations, small business depreciation will be as simple, other cases may take more effort. Either way, we’d like to make sure you don’t miss this opportunity to leverage new technology and save. Contact us today to request your free tax break consultation.
