Time is running out if you want to take advantage of tax savings! The year is nearly up and with that comes good news and bad news. The good news is that Santa will be donning his red attire once again for Christmas. Bad news is the IRS will be ready with red pens for the fast approaching tax season. Although taxes are inevitable, you have the option this Christmas season of investing in your company’s technology, while also removing the ice cold sting of taxes thanks to Section 179, but you only have until January 1st, 2016 to do it.
What is Section 179?
Section 179 is part of the IRS tax code which allows businesses to deduct the FULL purchase price of equipment and software purchased or financed during the tax year up to $25,000, while offering considerable tax savings for expenses up to $200,000 as well. That new printer you just bought for the office is 100% tax deductible. Here’s the best part: it counts for your managed services provider as well!
What does that mean in terms of tax savings?
Normally when buying equipment for your business, that equipment is considered an asset to the company and therefore cannot be fully tax deductible. The way companies typically deal with taxes on equipment is writing off its depreciating value. This would allow you to write off upwards of 20% of the equipment value each year.
Section 179’s purpose is intended to help SMBs invest in their company without worry. So what are you waiting for? Have you been holding off on important network upgrades because of tax season? Have employees been working on dated software and hardware? A managed services provider may be exactly what you need this Christmas season. Don’t miss out! Contact us today to take advantage of new technology!