Have you heard of Section 179? There is a under the radar tax relief titled Section 179, part of the IRS tax code aimed at helping small businesses. Within 179, you can write off the whole cost you spend on new IT hardware and software in this tax year, rather than depreciate over a few years. You can write off up to the amount of $1,040,000 if done before the new year. That is a lot of saving if you ask us.
What’s the Catch?
There is a catch, but not one of tricks, just time. To qualify for the relief, you must make the purchase and get it into service for your business by the end of the year, December 31st. That leaves only a couple weeks before the clock runs out to get your new technology bought and implemented.
There is some urgency here that we want to emphasize, if you don’t move fast enough. Time and supplies are running out. The holidays will slow B2B purchases down. There is already a strain of supplies of hardware due to the virus. You really should invest now if you think you’ll need anything in 2021. When you buy new equipment or software you can deduct the full purchase price from your gross income this year instead of using depreciation.
There’s a comprehensive guide with information you can run by your CPA here.
If You Want New Computers, Technology, or Software, You Need to Act TODAY
As we have stated, to benefit from Section 179, you must have purchased the equipment or software and put it into service by the end of the day on December 31. That means you only have 12 days till the deadline. Christmas can slow things down.
On top of that, if there are more lockdowns next year and you want to source hardware then, not only will you have lost this tax benefits, but the technology you want might not be available due to the disruption from the virus.
So, if you know or anticipate any need at all to purchase new hardware, technology, or software in the next few months, act now, and benefit from Section 179.
We Have a Team Ready to Help You
Unlike most IT support companies, we know all about Section 179, and how time and speed is of the essence. We’ve been gearing up to this for some time and are ready to assist you with any of your technology needs now.
Call Symmetric IT Group at 813-749-0895 to tell us what you need. We can also set up a meeting if you have any further questions regarding Section 179 and your business.
