It’s that time of year again when the kids are back in school and cooler weather comes our way. For a business, October marks the third quarter of the calendar year, and with it, preparation for taxes. At TechSeven, we are meeting with our CPA, having planning meetings, and reviewing our financials to make sure we end the year successfully and get off on the right foot for the next.
Last year, many of our clients and partners were awaiting the ruling on Section179 in order to make business decisions regarding purchases and tax deductions. We were watching too, and were pleased with a few rulings that were passed about the deduction.
What you need to know about Section 179 moving forward
- New Law Affecting Section 179 – On December 18th, 2015, the “Protecting Americans from Tax Hikes Act of 2015” was passed and signed into law by both the Senate and the House. Here is a summary of all the deductions affected by this law. *See section 124 for specifics on Section 179.
- 2016 Deduction Limits and Deadlines – The deduction limit for 2016 is $500,000 and begins a phase-out dollar-for-dollar once qualifying purchases have reached $2 million. Note that equipment must be financed/purchased and put into use by 12/31/2016.
- The provisions and deductions mentioned above have been permanently extended which is beneficial as businesses are not waiting on last minute laws to be passed each year.
- Qualifying Property – Wondering if your purchase can be deducted? Click here for a list of equipment covered by Section 179.
Qualified tech that can help your business
At TechSeven Partners, it is our goal to provide the best solutions to increase productivity and efficiency for your business. Below you will find a list of products and solutions you may want to consider this tax year.
- Server Upgrade: If your server is currently running Windows 2003, out of warranty, or you are noticing performance loss, upgrading your server may resolve a series of issues your office is experiencing.
- Computer Replacement: If you notice a lack of performance with computer workstations in your office or your software requirements are demanding more from your current system, then consider a replacement or performance upgrade to keep your business running smoothly.
- VoIP Phones: Are you running an older phone system? Do you need clearer phone lines and options to transfer to other employees in or out of the office? A new phone system may be the key.
- Network Upgrade: Upgrading your network can help with Wi-Fi stability, increased internet speeds, and enhanced guest services for your customers. Click here for more details about network design and upgrades.
- Office Renovations: If your business is expanding its office space or relocating, considering your tech placement and required cabling is important in the transition. An IT Infrastructure design plan will guide you in making sure all your data, audio, and phone cable is installed in all the areas equipment is needed.
- Dental X-Ray Equipment: If you own a dental practice, x-ray equipment purchases or upgrades may be a good choice for your practice.
- Audio and Video: New audio/video solutions such as TV’s, audio systems, conferencing systems, dual monitors, and security cameras can take your customer’s experience to the next level.
At the end of the day, there are many options for qualified Section 179 deductions, and a good plan is key to making the best choice for your business. Our team may know tech, but we definitely get assistance with tax (smiles). Check with your accountant or financial team before making any purchases to ensure they qualify and make sense for your bottom line.