If you haven't yet taken advantage of Section 179 tax incentives to purchase or lease office technology and managed IT equipment in the current tax year, you still have a few weeks left to do so.
According to the IRS website: "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. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves." However, in order to take the deduction for tax year 2020, the equipment must be financed or purchased and put into service between January 1, 2020 and the end of the day on December 31, 2020.
The Section 179 tax credit covers hardware such as:
Off-the-shelf software is also covered under Section 179.
Organizations are doing all they can to adjust to the realities of conducting business amidst a pandemic. Fortunately, Section 179 covers the purchase of FDA-approved body temperature scanning kiosks, as well as printers and materials needed for signage relative to COVID-19.
The 2020 deduction limit is equal to $1,040,000. For an instant snapshot of your possible savings, you can run your numbers through this IRS calculator.
This deduction is good on new and used equipment, as well as off-the-shelf software.
You'll want to contact you tax advisor first, to run any purchase scenarios by him or her. Then, to take advantage of Section 179 benefits before it's too late, call Brenda at 828.210.4330. But hurry—the deadline is December 31st!