Keeping Your Business in Line: What you Need to Know about Section 179

Did you know that under Section 179 the IRS allows you to write off up to $500,000 in equipment purchases?

According to the IRS:

“You can elect to recover all or part of the cost of certain qualifying property, up to a limit, by deducting it in the year you place the property in service. This is the section 179 deduction. You can elect the section 179 deduction instead of recovering the cost by taking depreciation deductions.”

Section 179 allows a business to deduct the full purchase price of equipment from its gross income and lower its tax bill. All improvements costing less than $2,000,000 to your computing infrastructure including servers, laptops, desktops, and mobile devices, will qualify for this deduction. This is a great way to maximize your business’ purchasing power by writing off the purchase price the same year you purchase the equipment.

To qualify for the section 179 deduction, your property must meet all the following requirements.

  • It must be eligible property.
  • It must be acquired for business use.
  • It must have been acquired by purchase.
  • It must not be property described under What Property Does Not Qualify

You must act fast and accept delivery of the equipment by December 31st to qualify for this deduction. Starting January 1st, the deduction will decrease to a $25,000 limit.

In addition to your 179 deduction, SBS Group is offering year end incentives to help you make the most of your computing dollars.  Ask how you can receive free Windows 8 tablets with your purchase.

Contact Tyler Bowman at 732-476-5923 or email to learn more about how you can take advantage of this valuable incentive.

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