And How to Save While Doing So
One of the most fundamental ways to remain competitive in today’s work climate is to ensure that your business is up to date with its tech. After all, outdated equipment and software can slow down your operations and decrease your company’s productivity and efficiency. Fortunately, there’s a tax incentive for buying new tech for your business while saving money.
Section 179 of the IRS tax code provides you with unbeatable end-of-the-year tax benefits. With this deduction, you can write off the full purchase price of qualifying equipment and software that was purchased or leased in the tax year. The U.S. government provided this deduction to ease tax burdens and encourage businesses to make the leap in investing in new tech.
In this blog, we’ll lay out three factors your business should consider when purchasing new office tech.
1. Your Overall Business Strategy
Firstly, it’s important to consider how the new tech you buy will fit into your overarching business strategy. What are the key priorities that are incorporated into this strategy? Is it to streamline operations? Improve workplace culture? Further profitability? Or perhaps a mix of all three?
Defining your priorities can help you build a better roadmap when buying new tech for your business. You can decide what operations can help you actually reach your goals. You can also get more specific about what features, integrations or software you need.
2. Your Level of Support
Purchasing and implementing new technological processes always comes with its challenges. You may face issues when adapting certain integrations or even installing the hardware itself. These challenges, if not addressed properly, could lead to further costly downtime.
To avoid delays, someone like a managed service provider can help you with the installation and implementation of new equipment and networks. You’ll have access to a level of expertise you may not have internally, saving you time, money and headaches.
3. Your Budget
Finally, the big question when buying new tech for your business will be your budget. You’ll have to consider factors like your current costs and your expected ROI from the new tech. But also think about this: down the line, your new technology could lead to an improved experience for your customers and, by extension, increased profits.
However, this is also where Section 179 comes in. Instead of having to write off equipment a little at a time through depreciation, you simply write off the entire purchase price of your new technology all at once. You can see further details on the official Section 179 website, including deduction limitations.
Benefit from End-of-the-Year Tax Benefits
If you were hesitant about making the jump when it comes to purchasing new tech, worry no more. There are tax deductions out there to help your business save costs while leveraging technology for your growth. Consult with a tax professional to see how Section 179 can help your specific business.
If you’d like to get advice on IT and tech strategies you can start utilizing in the new year, consult our IT experts. You can also get more information by checking out additional blogs in our resources section.
