Office Technology and Tax Deductions


Trying to understand tax codes can be a confusing and anxiety-producing process. But there are some tax code sections which are not only beneficial to your business, but which are also relatively straight forward. One of them is Section 179.

Section 179 allows any business to deduct the full purchase price of qualifying office equipment purchased or financed during the same tax year. It was created by the U.S. government to encourage small businesses to invest in themselves by upgrading their office technology.

All the office technology sold and leased by Capital Business Systems qualifies for Section 179.

In effect, Section 179 allows you to recoup the depreciation costs of your office technology at an accelerated level. In the past, it was only possible to write off depreciation a bit each year. Section 179 allows you to write it off all at once, as long as you do so in the year that you purchased or leased that equipment.

Many businesses use Section 179 to purchase their office technology immediately because the tax break makes it much easier to budget. For most small businesses that use Section 179, the entire cost of their purchased or leased office equipment can be written-off on their 2020 tax return (up to $1,040,000).

There are a few qualifications. The office technology and/or software must be primarily (more than 50%) used for business purposes to qualify and in use during the year it was purchased. As long as you have purchased, financed, and/or leased new or used office technology during 2020, and have spent less than $3,630,000, then should qualify for the Section 179 Deduction.

Every business will benefit in a different way, of course. The tax break that you receive will be based on multiple factors, such as your tax bracket and the amount you spend on qualifying office equipment. You can find a Section 179 calculator here.

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