Buy or Lease Equipment, Save Money with Section 179

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Did you know that our products are tax-deductible? Read on to discover how Section 179 can save you thousands.

What is Section 179?

Section 179 is a tax deduction that allows you to deduct the full purchase price of qualifying property from your income in one year (the current tax year) vs. deducting a portion each year over the lifespan of the property.

Who was Section 179 created for?

Section 179 was designed with small- to medium-sized businesses in mind. This year, it allows you to write off up to $1,000,000 when you spend $2,500,000 or less. After $2,500,000 is spent, the deduction begins to phase out and completely goes away once $3,500,000 in purchases is reached. This ensures it is a true small- and medium-sized business benefit. Because the deduction can help offset the initial purchase price, Section 179 allows businesses to truly invest in themselves and purchase equipment, hardware, or software when it’s needed instead of waiting.

What property expenses are eligible?

Almost all types of equipment can qualify for this deduction. This includes telecommunications equipment (such as phones), the hardware that makes up your network infrastructure (such as routers and cables), “off the shelf” software, and more. Other guidelines are as follows:

  • Property must be tangible.
  • Property must be purchased, financed, or leased and placed into service between January 1, 2019, and December 31, 2019.
  • Property must be used for business more than 50% of the time.

For more information about qualifying property, see the Section 179 website.

How can you benefit from Section 179?

Section 179 can change each year (or even mid-year!) without notice, so it’s important to take advantage of the benefits while you can. Don’t go another month with outdated or ineffective technology that could be hindering your business. Voice, data, and network equipment is Section 179 qualified, which means you should purchase or lease now to deduct in the 2019 tax year.

Have questions or want to learn more about how you can benefit from Section 179? Contact us.