Capitalize on IRS Tax Code 179

Maximize your purchasing power by capitalizing on the IRS tax code section 179 incentive for business investment...

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 they buy (or lease) a piece of qualifying equipment, they can deduct the FULL PURCHASE PRICE from their gross income. It’s an incentive created by the U.S government to encourage companies to buy equipment and invest in their business.

Eligible Property

To qualify for the section 179 deduction, your property must be one of the following types of depreciable property.

  1. Tangible personal property.
  2. Other tangible property (except buildings and their structural components) used as:
    1. An integral part of manufacturing, production, or extraction, or of furnishing transportation, communications, electricity, gas, water, or sewage disposal services,
    2. A research facility used in connection with any of the activities in (a) above, or
    3. A facility used in connection with any of the activities in (a) for the bulk storage of fungible commodities.
  3. Single purpose agricultural (livestock) or horticultural structures. See chapter 7 of Publication 225 for definitions and information regarding the use requirements that apply to these structures.
  4. Storage facilities (except buildings and their structural components) used in connection with distributing petroleum or any primary product of petroleum.
  5. Off-the-shelf computer software.
  6. Qualified real property (described below).

 

 

Essentially, your telecommunications equipment needs absolutely falls under the category of qualifying exemption equipment so long as it is intended for business use! Under this section, phone system equipment savings can be substantial for any business considering a telecommunications installation or upgrade.  Specific savings amount and equipment needs will vary, contact us here at Warwick to find out what solutions are the best fit for your business. Then bring this IRS tax section up with your trusted accountant to determine how much you can write off this year!

Sources:

https://www.irs.gov/publications/p946/ch02.html

3 responses to “Capitalize on IRS Tax Code 179

  1. Thank you for the article. Is SAAS with a monthly fee such as a monthly Webex, Office, Hubspot etc. subscription considered off-the-shelf software and eligible for the full tax credit?

    • Ryan Shorts says:

      SAAS is normally expensed on a monthly basis as you make the payments, but we suggest you consult your accountant for confirmation.

  2. Mr. Yefrem Durham says:

    Hey there , Perfect post and also really educative. Nice to find your own website.

    My Page

Leave a Reply

Your email address will not be published. Required fields are marked *

Privacy Policy | Terms of Use

© 2017 Warwick Communications, Inc. All Rights Reserved