While Halloween has actually passed, the scariest season for businesses has started to send shivers down their spinal columns– tax season. But, do not let the doom and gloom of tax season get you down, Section 179 may just be the trick that lifts you up.

What is the Section 179 Tax Deduction?
Instead of gradually depreciating hardware and software over numerous years, Section 179 enables you to deduct the complete cost of any permitted hardware or software applications bought or leased throughout the year. It’s meant to motivate businesses to stay competitive and grow by acquiring the equipment they need while also benefiting their bottom line.

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

What do I have to do?
Must be bought, financed or leased and implemented by midnight Dec. 31, 2017.
Must be bought for business usage more than 50% of the time.

What are my limitations?
$ 500,000– Maximum overall quantity you can deduct of hardware and software purchased in 2017.
$ 200,000– Maximum overall quantity you can deduct of leased equipment in 2017.
$ 2M– Maximum overall quantity of devices bought in 2017 eligible for complete deduction.

How can I take advantage of the Section 179 Deduction?
Merely make the purchase and use Form 4562 to claim your tax break.
The complete tax break can be claimed up until you’ve reached $2M in equipment or application purchases.
Previous the $2M point, the reduction decreases on a dollar-for-dollar basis and vanishes once $2.5 M worth of equipment is bought.

Depreciation is often one of the most intricate items a company has to deal with. Our objective, along with your tax accounting professional, is to make your taxes as easy 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.