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 might simply be the trick that boosts you up.

Exactly what is the Section 179 Tax Deduction?
Instead of slowly depreciating technology over numerous years, Section 179 permits you to subtract the complete cost of any qualifying hardware or applications acquired or rented throughout the year. It’s meant to encourage companies to remain competitive and grow by acquiring the technology they need while also benefiting their bottom line.

What qualifies?
Acquired, financed or rented hardware and software
Desktops, laptops, tablets, mobile phones
Servers, printers, routers, network switches, network security devices
Off-the-shelf applications (productivity, administrative, operating systems, etc.)

Exactly what do I have to do?
Must be acquired, financed or rented and deployed by midnight Dec. 31, 2017.
Must be acquired for business usage more than 50% of the time.

Exactly what are my limitations?
$ 500,000– Maximum total quantity you can deduct of hardware and software purchased in 2017.
$ 200,000– Maximum total quantity you can deduct of rented equipment in 2017.
$ 2M– Maximum total 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 tax break.
The complete tax break can be declared until you’ve reached $2M in equipment or application purchases.
Past the $2M point, the reduction decreases on a dollar-for-dollar basis and vanishes once $2.5 M worth of software and hardware is acquired.

Devaluation is often among the most complex items a business has to deal with. 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 need help starting, contact us to request your free, no-obligation Section 179 consultation.