Section 179 deadline 3 days away (get your project funded)

December 27th, 2013

Have a project but not the money, you might look at qualified financing and Section 179 of the tax code.

You may know Section 179 from past years where firms can purchase up to $25,000 of equipment and deduct it. Time is running out on H.R. 8: American Taxpayer Relief Act of 2012 which temporarily increased the limit for 2013 to $500,000, though it expires December 31, 2013.

If you are considering a needed purchase or upgrade, you should do so now to take advantage of this special 100% tax deduction.

Under Section 179, small business owners can deduct the entire cost (100%) of up to $500,000 for computer equipment, network hardware, off-the shelf software and other business equipment. But you must make the purchase before January 1, 2014.

Some of the key projects we are seeing people bite into

  • Replacing their old Windows XP PCs (Microsoft announced they will no longer support Windows XP or Microsoft Office 2003). This is more concerning for firms in healthcare or that serve healthcare and must maintain compliance.
  • Replacing old phone systems. With financing, you get the benefits of current phone technology to improve client communications (customer service) and easier collaboration (sales acceleration) and pay for it over time.
  • Virtualizing aging server environment. If you have four or more older servers or growing storage needs, this might be a great time to replace old servers, add more storage and start working on disaster recovery and write it off. Some financing programs allow you to include labor and software into your costs.

The window is closing so start today. Call us for financing information 817-337-0300 or check with your existing preferred vendor (it is not limited to only IT).