Your technology may not have an expiration date but, like a bruised banana, it sometimes shows indications of wear and tear. It’s not uncommon for organizations to try to extend their computer lifespan, however they’ll become frustrated when older systems “unexpectedly” quit working. In reality, these older systems cost you more in downtime than it would cost to buy brand-new devices.
So, when do you need to update your systems?
Computers– Every 3 to 5 years
Other Tech (including printers and switches)– Every 2 to 6 years
Business Vehicles– Every 6 to 10 years
What if we said you have the ability to make your upgrades right now and can deduct the total cost of your purchases this tax season? Well, it’s absolutely true! Section 179 of the US Tax Code allows you to deduct the full price of any qualifying hardware or applications purchased or rented during the year, including:
Bought, financed or rented equipment
Desktops, laptop computers, tablets, smartphones
Servers, printers, routers, network security devices
Off-the-shelf applications (productivity, administrative, anti-virus, operating systems, etc.)
All you need to do is utilize form 4562 to declare your deduction. The full deduction can be declared up until you’ve reached $2-million in hardware and application purchases. Past that point, the deduction reduces on a dollar-for-dollar basis. You just have to make certain the hardware and applications are deployed by December 31, 2017.
With Section 179, your company has the opportunity to utilize brand-new equipment right now instead of waiting and potentially slowing down growth and innovation. To find out more about Section 179 or if you require help getting started, contact us to request your complimentary, no-obligation Section 179 consultation.