Of all the changes made in tax code legislation in the past few years, are any of them actually beneficial to business owners like you? The answer is, yes. One of the best-kept secrets hidden in the tax code serves as a motivator for businesses, and it’s called Section 179.
After starting your business, writing off all the equipment and software needed to run it is an option. However, rather than get the money for the equipment back in small chunks over a span of time (what is known as depreciation), Section 179 allows business owners to write off the entire amount of the purchased equipment and software for the current tax year immediately, encouraging the purchasing of newer equipment and software when it’s needed, and not later.
Simply put, Section 179 encourages businesses and business owners by enabling them to save more money sooner rather than later. And the best part is the limit, which is quite generous. Your deduction limit for business equipment and software purchases, as dictated by Section 179, is $500,000 with a spending cap of $2,000,000 over the year!
Incredibly, Section 179 also allows business to lease their equipment for less money while still deducting its full purchase amount. That money goes directly back into your business’s bank account! This is not a loophole, but part of the code!
Computers and laptops, office furniture and supplies, certain vehicles used exclusively for your business but especially ERP Software qualify under Section 179.
Read Also: What is an ERP Software?
The largest businesses spend exponentially more on equipment and software than $2,000,000, meaning Section 179 benefits most to small to mid-sized business owners! Claiming deductions under Section 179 is as easy as filling out a simple IRS form.
With the year coming to an end, now is the perfect time to invest into a software and take full advantage of section 179. Contact us to benefit from this opportunity!