Having the proper materials and resources is essential to the success of any company. Office equipment such as copiers and computer software can make a night and day difference in productivity; ultimately deciding if your business is getting ahead, or falling behind, the competition.
The Section 179 Deduction can save you money, plus provide your business with more efficient equipment that will kick start the growth of your company in the new year.
What’s the Section 179 Deduction?
According to Section179.org, “Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income.”
Why was it created?
The U.S. Government created section 179 as a form of tax relief for small businesses. It’s also an incentive for small businesses to buy new equipment and essentially invest money back into the company in order to grow the business.
What equipment qualifies for the deduction?
A wide variety of equipment for business use qualifies under Section 179, including office equipment, computers, computer software, office furniture and more.
What does this mean for my business?
Your business can write off an entire purchase of a piece of equipment for that year rather than deducting the cost over a number of years. For 2013, you can deduct up to $500,000 on new or used equipment from Alabama Graphics. Next year the deduction amount is expected to go down to only $25,000.
There are unlimited possibilities as to what your business can do with all the money saved. You can hire that additional employee you’ve been needing, expand marketing efforts, or give employees the holiday bonus they deserve.
But you must hurry; December 31, 2013 is the deadline for Section 179. Now is the time to make those large purchases you’ve been putting off!
To learn more about the code, please visit: www.section179.org or visit Alabamagraphics.com to browse equipment.