Accounting - General Informatics
Section 179 – Making tax deductions work for your business

If you’ve been considering buying new computers, phones or copiers for your office, now is the time to take advantage of tax cash flow savings.

Thanks to Section 179, businesses can deduct up to $500,000 in qualifying purchases from their 2017 income. If you’re not familiar with the Section 179 Deduction, the guidelines are pretty straightforward:

  • Section 179 allows businesses to deduct the full purchase price of qualifying equipment purchased during the tax year.
  • Most tangible business equipment and off-the shelf (i.e. not custom) software qualifies. (See this list for examples of qualifying purchases)
  • The equipment and software must be purchased/financed and in place by midnight December 31, 2017 to be deducted for the 2017 tax year.
  • The deduction begins to phase out if more than $2,000,000 of equipment is purchased. Larger businesses that spend more than $2.5 million on equipment won’t get the deduction, but they can take advantage of the 50% Bonus Depreciation

Want to make the most of this tax deduction while preparing your business for another successful year?  Here are the top three technology investments to consider:

NETWORK SECURITY UPGRADE

With more and more hackers setting their sights on SMBs, network security has never been more important. And no good network security strategy is complete without a solid firewall.

Consider upgrading to a firewall that can protect you from the latest threats, including zero-day attacks and encrypted threats (like Crypto) that traditional firewalls may not catch.

WINDOWS 10 PCs OR LAPTOPS

Old devices can take a serious toll on productivity – after about 3 years, PCs slow down substantially and become much more prone to failure. Taking a proactive approach and replacing computers before they become a hindrance can save you time, money, and lots of frustration in the long run.

If you still have computers running Windows XP, replacing these PCs should take priority. Hackers love to target out-of-date software, and running XP or even older operating systems makes you an easy target. Luckily, there are tons of great new PC options out there for any budget – visit our online store to check out the latest desktops, laptops, and tablets.

A SMARTER OFFICE PHONE SYSTEM

Businesses have to be flexible, social, and always-on; our phone systems should enable us to do all this — and more.

Like all other technology investments, your phone system should be strategic in helping to boost your bottom line. Modern VOIP office phone systems provide the cost efficiency, reliability and robust features (voicemail to email, audio + web conferencing, advanced call forwarding) that can help put you ahead of your competition. Not sure if you need an upgrade? Check out this quick 10 question evaluation.

 

Not sure what technology investment is best for your business? Contact us to chat with our team of business consultants. We’re here to make sure your business makes the most of this tax incentive.