If you’ve been looking for the right time to make some significant investments into technology for your company, 2016 could be your year. Section 179 of the IRS tax code makes it so that companies can buy up to $500,000 worth of equipment that can be immediately deducted on a business’s taxes. A recent New York Times article has a good example of how this could work.
If a company has a $90,000 profit and decides to spend $50,000 of it on new computers, the company would normally write off the cost of the equipment gradually, deducting a portion of it each year over the span of the computers’ useful life. But Section 179 allows the business to deduct the entire $50,000 cost at once in the year the equipment is purchased, reducing the company’s taxable profit to $40,000.
Section 179 applies for both purchases and leases. While this is good for the rest of this year, there’s no guarantee that this will remain in effect in the future. Experts are suggesting you act now to take advantage of this part of the tax code.
Section 179 can change each year without notice (Section 179 has even changed mid-year), so it benefits you to take advantage of this generous tax code while it’s available. Section 179 offers small businesses a great opportunity to maximize purchasing power.
If you have any questions about any investments that would qualify such as barcode printers, card printers, scanners, mobile computers, WLAN, print & apply, RFID readers and even off the shelf software, contact a product specialist at 1-800-446-1991.