The IRS gives businesses a tax break until Dec 31st
If you’ve been thinking about a technology purchase this year, do it before Dec 31st, to qualify for a huge write-off under section 179. Passed on December 3, Section 179 allows businesses to acquire technology and invest in corporate growth.
What is Section 179?
Section 179 of the IRS tax code encourages small and medium size companies to invest in their growth by offering a tax break on purchases made through midnight on December 31st, 2014. Under Section 179, businesses can deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. If you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. – www.section179.org
Businesses get both technology and AND a write-off of up to $500,000 for expenses up to $2,000,000 in their current tax year. An additional 50% bonus depreciation is also available for new equipment purchases that exceed the $2,000,000 section 179 cap.
“The allowance is great news for business as the write-off helps them invest more in their own company and keep more their income in their business”
Technology purchases filed under Section 179 allow business owners claim their full depreciation deduction from technology purchases in one year, rather then breaking them into smaller deductions over several years.
The total savings gained from the write-off can exceed first year installments, making an investment in technology equipment profitable for the current tax year for small and mid sized businesses.
What can I write off?
The tax provision encourages businesses to invest in technology and can be applied to:
- New and Used Equipment such as computers, servers, firewalls, routers and switches, as well as labor costs to install and configure
- Phone Systems including Voice and Video Collaboration systems as well as labor costs to install and configure
- Off the Shelf Software used in businesses
- Cash purchases or financed purchases through programs like CISCO Capital or leasing programs from i-Tech
The Fine Print…
So what is the catch? Much less than you would think! To qualify, technology purchases must:
- Be made before December 31st 2014
- Be limited to tangible Technology Equipment or off-the shelf Software purchases, as well as labor and configuration fees
- Be in use in the same tax year that the deduction is being taken (for tax year 2014, the equipment must be put into service between 01/01/2014 and 12/31/2014)
- Be used primarily for business purposes
How to apply?
- Contact an IT firm such as i-Tech Support (407-265-2000) to discuss your technology purchase.
- Complete technology purchase and collect an invoice prior to Dec 31st
- Download Form for the tax deduction, found on section179.org
- File your purchase under section 179 with your tax paperwork
i-Tech Support – Technology Starts Here
i-Tech Support is an Orlando based Total Technology Support firm dedicated to ManagedIT in Orlando, Advanced Technology, Cloud Services and Information Security Business Services.
Call i-Tech Support. 407-265-2000 firstname.lastname@example.org