It’s year-end tax planning time once again. If you are looking for ways to reduce your tax liability, now is the time to consider leasing or purchasing new office equipment or technology.
Section 179 of the IRS code allows businesses to take an immediate expense deduction for depreciable business equipment, including copiers, printers, and other office technology purchased before December 31st.
If you want to take advantage of the deduction for this calendar year, now is the time to act!
So, What Exactly is Section 179?
Section 179 was enacted by the US Congress and is specifically designed to help small to mid-sized businesses. Under Section 179, companies can write off the total purchase, finance, or qualifying lease cost of qualifying office equipment that was purchased in the current calendar year.
Using the 179 Tax Deduction means if you lease, finance, or purchase covered office equipment, you can deduct the entire cost on this year’s tax return. To qualify for the deduction any leased equipment must be subject to a $1 buyout.
The Business Benefits of the 179 Law
The goal of Section 179 was to provide additional tax relief for small to mid-sized businesses to encourage them to invest in themselves. This can contribute to a stronger economy. In fact, it is also currently one of the few government incentives for small businesses that are also included in many new tax bills and stimulus acts.
The deduction covers the purchase of new and used equipment. To qualify any equipment must be used for business purposes more than 50% of the time. Your business can also reap the benefits when leasing with a qualifying equipment finance agreement.
The Bottom Line…
Every business needs equipment and technology to operate. That means they most likely make multiple purchases throughout the year. Section 179 makes investing in your business more attractive from a tax standpoint. As we approach the end of 2022, now is the time to upgrade your technology to prepare for the coming year! If you’re considering investing in new equipment, give your TSG rep a call and let us help you choose the perfect equipment to meet your needs!
The Swenson Group (TSG) is an award-winning Bay Area Managed Service Provider that has helped thousands of organizations achieve more by leveraging cost effective technologies to be more productive, secure and cost effective. Services include Managed Print, Document Management, IT Services and VoIP. Products include MFPs, Copiers, Printers and Production Systems, Software and Solution Apps. For the latest industry trends and technology insights visit TSG’s main Blog page.