Your technology may not have an expiration sticker but like a bruised banana, they often show signs of deterioration. It’s not uncommon for organizations to attempt to stretch their computer capabilities over the course of a decade, but they’ll become frustrated when a computer “unexpectedly” quits working. In fact, it’s costing you more money in downtime and wait-time than it would cost to buy new equipment.
So, when do you need to upgrade your equipment?
- Computers – Every 5 to 7 years
- Other tech, including printers and switches – Every 3 to 5 years
- Company Vehicles – Every 6 to 10 years
What if we told you, you have the ability to make your upgrades right now and could deduct the full amount of your purchases this tax season? Well, it’s true. Section 179 allows you to deduct the full price of any qualifying equipment or software purchased or leased during the year, including:
- Purchased, financed or leased purchases
- Workstations, laptops, tablets, smartphones
- Servers and printers, routers, network switches, network security appliances
- Software (productive, antivirus, administrative, etc.)
All you need to do is 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.
Overall, with Section 179, your business has the opportunity to leverage new equipment right now instead of waiting and potentially slowing down growth and innovation. We want to help you do just that, contact us to request your free, no-obligation tax deduction consultation.