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Save a Bundle of Money on Business Taxes

taxes

Please forgive me for the headline if it seems a bit sensational, but I needed to get your attention about a perfectly legal way to save quite a bit of money on your business taxes while updating outdated computer equipment that is going to quickly pass you by if you don’t act soon.

Make your Business Expenses Count

Typically, if a business purchases an asset that has a useful life of more than one year, such as computer hardware, the expense must be spread across several tax years as depreciation, with a portion of the cost deducted each year.  However, the provisions of Internal Revenue Code Section 179 allow a sole proprietor,partnership, or corporation to fully expense certain kinds of tangible property in the year it is purchased.  That is, you can deduct the FULL purchase price of qualifying purchases the year you buy them. If your money is going out the door for business taxes anyway, you may as well use it to benefit your company's infrastructure if you can!

Did you know that off-the-shelf software such as Microsoft Office qualifies as a Section 179 purchase? As long as the software is available for purchase by the general public and it hasn’t been custom designed, you can write it off this year just like computers, tablets, and other office equipment.

 RELATED POST: Which is Better for Your Business: Apple iPad of Microsoft Surface?

For 2014, the Federal Government allows you to expense up to $25,000 in business equipment, thereby REDUCING your taxable income on your current year’s tax return. It’s important to note that while this is significantly less than the 2013 deduction allowances, it is still real money in your pocket! However, you have to act now, as once the clock strikes midnight on December 31st, Section 179 can’t help your 2014 profits anymore. See www.section179.org for more details.

Call us before December 15, 2014 to discuss potential computer hardware and software purchases in your business, and we will provide you with a full action plan to implement your new technology before December 31st to take advantage of this year-end deduction.  A smart business owner is always looking for more ways to save money!

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meWritten By Kevin Gray

Hello! I am the Sales Manager and one of the Senior IT Consultants @ EnvisionIT Solutions. I help our clients envision great technology solutions that help their businesses grow.  Let me know if you have any questions. I am an avid outdoorsman who loves fly fishing and camping. I also love sports – soccer, basketball, football….