Did You Know? – Section 179

Did you know companies can take advantage of Section 179 to purchase new equipment including tablets, smartphones, and computers? Cost is always a factor whether you’re purchasing items for the first time or upgrading your equipment, but tax law provides numerous write-off incentives that can reduce your costs!

A popular provision among small businesses, the Section 179 election allows a business to expense a portion of eligible asset purchases in the year the assets are placed in service, in lieu of depreciating the assets over several years. The expense election is reduced (dollar for dollar) once qualifying asset purchases exceed the investment ceiling. Eligible Section 179 property includes:

• Computer software purchased off the shelf
• IT hardware including laptops, VoiP phones, and wireless infrastructure
• New and used machinery, equipment, vehicles, and other tangible non-real estate property
• Qualified improvement property (eligible for both Section 179 expensing and bonus depreciation)
  • Section 179 expensing can be used for specific kinds of real property that is normally depreciated over 39 years. This includes roofs, HVAC systems, fire protection and alarm systems, and security systems for nonresidential real property (e.g., a commercial building but not an apartment complex).

Interested in purchasing year-end equipment for your office? Reach out to our sales team and we would be more than happy to help!

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More information on Section 179.