Highlights
Tax Benefit: There’s a little-known tax relief called Section 179. This Section allows your business to write off the entire spend on new IT hardware and software in this tax year, rather than depreciate over a few years.
The Clause: To qualify, you must make the purchase and put it into service by the end of the day on December 31st, 2020.
The Urgency: Time and supplies are running out! Literally… Christmas will slow B2B purchases down. Supplies of hardware are still massively disrupted due to coronavirus. You should invest now in anything you think you will need in 2021.
Have you heard of Section 179?
It’s part of the IRS tax code that’s aimed at helping small businesses, just like yours.
When you buy new equipment or software you can deduct the full purchase price from your gross income this year, rather than depreciate it over a few years.
It was designed to encourage you to invest in your business, and it’s a generous relief… you can write off up to $1,040,000 in this tax year.
There’s a comprehensive guide with illustrations, and information you can run by your CPA here.
If you need new computers, technology, or software, you need to act TODAY.
The one clause is that you must have purchased the equipment or software and put it into service by the end of the day on December 31st, 2020.
That means you only have until the end of the month, and Christmas will slow things down.
Not only that – we are still seeing supplies of hardware disrupted by the virus (the supply chains never got back to normal this year). It’s still difficult to get hold of certain specifications or pieces of equipment.
If there are more lockdowns next year, and you want to source hardware then, not only will you have lost this tax benefit, but the technology you want might not be available.
So, if you can see any need at all to purchase new hardware, technology, or software in the next few months – act now, and benefit from Section 179.
Our team is on standby to assist your team in taking advantage of these savings. Feel free to use the calendar link below to schedule a call with us!