While Halloween has passed, the scariest season for companies has started to send shivers down their spinal columns– tax season. But, don’t let the doom and gloom of tax season get you down, Section 179 may just be the trick that raises you up.
What is the Section 179 Tax Deduction?
Rather than slowly depreciating hardware and software over several years, Section 179 allows you to deduct the complete cost of any allowed equipment or software applications acquired or leased during the year. It’s meant to motivate companies to stay competitive and move forward by acquiring the equipment they require while also benefiting their bottom line.
What is allowed?
Purchased, financed or leased equipment
Workstations, laptops, tablets, smartphones
Servers, printers, routers, network switches, network security devices
Off-the-shelf applications (productivity, administrative, operating systems, etc.)
What do I have to do?
Needs to be acquired, financed or leased and deployed by midnight Dec. 31, 2017.
Needs to be acquired for company usage more than 50% of the time.
What are my limitations?
$ 500,000– Maximum overall quantity you can deduct of equipment purchased in 2017.
$ 200,000– Maximum overall quantity you can deduct of leased equipment in 2017.
$ 2M– Maximum overall quantity of devices acquired in 2017 eligible for complete deduction.
How can I make the most of the Section 179 Deduction?
Merely make the purchase and utilize Form 4562 to declare your deduction.
The complete deduction can be declared up until you’ve reached $2M in equipment or software purchases.
Previous the $2M point, the reduction decreases on a dollar-for-dollar basis and disappears when $2.5 M worth of software and hardware is acquired.
Devaluation is typically one of the most intricate items a business has to handle. Our goal, together with your tax accountant, is to make your taxes as easy as possible. For more information about Section 179 or if you require help getting started, contact us to request your complimentary, no-obligation Section 179 assessment.