Are you looking to purchase or lease business equipment in the current tax year? Under the IRS Section 179 deduction, your organization may be able to take advantage of tax benefits for technology investments!
Section 179 was enacted to help small businesses by allowing them to take a depreciation deduction for certain assets in one year, rather than depreciating them over a longer period of time. Effective as of January 1, 2018, businesses can immediately deduct up to $1 million for qualifying technology purchases with a limit of $2.5 million. Best of all, this valuable tax benefit covers document management software purchases as well as other software solutions for business efficiency!
So how does it work? If your business purchases, finances, or leases technology equipment or computer software during the calendar year, then you can elect the Section 179 Deduction to ensure that your business captures the available tax savings. To do this, you will need records on the date of purchase, date you started using the equipment or software, and all costs associated with the purchase including setup fees. The amount of the deduction is the total cost for each individual item of property, which must remain under the $2.5 million maximum.
It’s that simple! Plus, when financing these technology purchases, you may be able to depreciate the purchase fully while spreading the actual acquisition cost over an extended period of time. The potential financial benefit to your bottom line is immediate as more cash remains on your balance sheet. Additionally, you may be able to accelerate your technology plans more quickly as a result.
If your business is in need of a new solution for driving business efficiency, it’s not too late to invest in next-generation information management technology! Now is the time to take advantage of deductions for purchased or financed business technology. Section 179 is a fantastic incentive for investing in your company.
Find our more about how you can leverage 2018 tax treatments for Square 9’s award-winning business software!
Disclaimer: See section179.org to get more detail on this tax treatment. Not provided as tax or legal advice. Tax law can be complicated; consult a tax advisor for more information.