Scream for Section 179 Tax Deduction
While Halloween has passed, the scariest season for companies has started to send shivers down their spines– tax season. But, do not let the doom and gloom of tax season get you down, Section 179 may simply be the trick that raises you up.
What is the Section 179 Tax Deduction?
Rather than gradually depreciating equipment over numerous years, Section 179 enables you to deduct the complete cost of any allowed hardware or software applications acquired or leased throughout the year. It’s meant to encourage companies to stay competitive and progress by buying the technology they need while also benefiting their bottom line.
What is allowed?
- Acquired, financed, or leased equipment
- Desktops, laptop computers, tablets, mobile phones
- Servers, printers, routers, network switches, network security devices
- Off-the-shelf software (productivity, administrative, operating systems, etc.)
What do I need to do?
- Must be acquired, financed or leased and put into use by midnight Dec. 31, 2017.
- Must be acquired for organization use more than 50% of the time.
What are my limits?
- $ 500,000– Maximum overall quantity you can write off of equipment purchased in 2017.
- $ 200,000– Maximum overall quantity you can write off 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 use Form 4562 to claim your deduction. The complete deduction can be declared until you’ve reached $2M in hardware or application purchases. Past the $2M point, the deduction decreases on a dollar-for-dollar basis and disappears when $2.5 M worth of software and hardware is acquired.
Devaluation is typically among the most complicated products a business has to deal with. Our goal, in addition to your tax attorney, is to make your taxes as simple as possible. For additional information about Section 179 or if you need assistance starting, contact us to request your free, no-obligation Section 179 consultation.