For some small to mid-sized businesses, it may seem easier to hold onto technology until the device stops working. However, in today’s tech-driven world, keeping up with new technological demands is more important than ever. Otherwise, businesses risk falling behind their competitors and slowing down their operations. Luckily, the U.S. government has provided an incentive for businesses to grow with their tech thanks to technology tax deductions.
Using the technology tax deduction Section 179, businesses can write off their full purchase of new equipment at the end of the tax year, which in turn can decrease their tax burden.
Let’s explore everything you need to know about why and how you should upgrade your technology.
1. Enjoy Better Efficiency
Devices that run on slow systems cause numerous problems, including delays or glitches. These issues lead to downtime, which can be costly for a company and lead to possible reputational damage on behalf of customers.
Instead, with modern tech, your business can enjoy much more efficient, smoother, streamlined operations that keep your staff and customers happy. Moreover, new technology comes with better features that can help automate administrative processes so you can focus on the bigger picture.
2. Strengthen Your Cybersecurity
88% of small business owners feel their business is vulnerable to a cyberattack. It’s understandable why — cyberattacks are only getting more complex as hackers develop new ways to infiltrate businesses. Old technology is more vulnerable to hacks, security breaches and leaks, as outdated software can’t successfully hold up against an attack.
By upgrading your equipment, you develop stronger cybersecurity that’s more equipped to fend off hackers. Plus, cybersecurity measures are always evolving to keep up with new cybercrimes. Following the most cutting-edge security practices can strengthen your safety online.
3. Save Costs and Grow
Many companies are wary of investing in new equipment for fear of high costs and risking their competitive edge. Fortunately, with technology tax deductions like Section 179, businesses can more confidently invest in technology and allow their company to flourish.
The Section 179 tax deduction allows businesses to deduct the full purchase price of qualifying equipment or software bought, financed or leased during the tax year from their gross income. There’s no more waiting to write off for depreciation. As long as the qualifying equipment was bought and used from January 1st to December 31st of the tax year and used over 50% of the time for business purposes, businesses can write it off.
Here’s what equipment qualifies:
- Workstations, laptops, tablets or smartphones
- Servers, printers, routers and network security appliances
- Off-the-shelf software
Invest in Yourself
The time to invest in new technology for your business is now. Luckily, thanks to technology tax deductions, your business can reduce expenses while taking advantage of the latest and greatest in hardware and software.
You can contact our IT experts to ensure you don’t miss out on savings and leverage the best equipment out there.
If you want to learn more about cost-saving IT resources and strategies, check out additional blogs in our resources section.
The information provided in this blog is for educational purposes only. Consult your tax professional for information on how Section 179 may relate to your business.[/vc_column_text][/vc_column][/vc_row]