10 Nov How Does Section 179 Benefit Your Business?
Trying to stay on top of your business’s finances can feel like a major challenge, especially when tax season rolls around. With so many decisions to make, tools to invest in, and financial considerations to make, you want to ensure that you’re getting the best return possible. One of the best tools your business can take advantage of is Section 179 of the IRS Tax Code. But what is Section 179, and how can it benefit your business? Find out how you can use it to your company’s advantage.
What Is Section 179?
Section 179 of the IRS Tax Code is a regulation that allows businesses to take advantage of an amazing deduction. Instead of gradually writing off the cost of equipment over several years through depreciation, businesses can write off the entire purchase price of qualifying equipment or software in the year it was bought or financed. This means you get a better tax deduction and can direct those funds towards other things that are more profitable for your business.
For instance, if in a tax year your business financed equipment worth $60,000, rather than slowly deducting its value over multiple years, you could deduct the full $60,000 from your taxable income.
What Qualifies for Section 179?
Not everything your business purchases will qualify. Some of the items you may be able to deduct under Section 179 include:
- “Off-The-Shelf” Software: This is software that isn’t customized, readily available to the general public, and isn’t designed for a specific business need.
- Equipment Purchased for Business Use: Whether you’re buying printers, photocopiers, or other machinery for your business operations, these can all qualify for the Section 179 deduction.
- Computers: Investing in computers is almost non-negotiable for businesses. Luckily, these expensive tools often qualify for the Section 179 deduction.
- Office Furniture or Equipment: Your office setup, from chairs to desks and other vital furniture, can be fully written off in the year of purchase.
- Specific Work Vehicles: Vehicles that serve exclusive work purposes, such as forklifts or trailers that can’t double up as personal vehicles, also qualify. This makes expanding or upgrading your work fleet a more financially feasible option.
How Can Arizona Business Equipment Help?
While Section 179 provides numerous advantages, choosing the right equipment to invest in is also important. At Arizona Business Equipment, we offer a wide range of printers, copiers and scanners for rent or purchase. We help you get the best value for your money, and you can also benefit from Section 179 when you purchase these essential business tools.
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Section 179 of the IRS Tax Code is an opportunity for your business to grow and for you to save. By understanding its nuances and the qualifying items, you can make informed decisions about your investments. If you’re looking to equip your office with the best and want to make the most of Section 179, reach out to Arizona Business Equipment today.