Ouch. As a small business owner, you're familiar with the sting that comes with spending large sums of money on new office equipment. Technology isn't cheap, and you're smart enough to invest in the good stuff that will save you money and time down the road. But ooph, it's still not fun to fork over the cash and see your hard-earned money go out the door. A copier or printer can set you back a pretty penny these days, particularly if you purchase one that's meant to last for a while.
The good news: you'll get your money's worth if you pay for a high-quality piece of equipment that will go the distance with you as your company grows. The other good news: it's a tax write-off.
Using Deductions for Office Equipment
Uncle Sam knows that supporting small business means supporting the American worker, and keeping more cash in local economies is good for everyone. That's why there are tax deductions for small businesses to upgrade their equipment; specifically, the Section 179 deductions.
If you're preparing your own taxes, it's crucial that you understand and use the deductions that you're owed when you purchase equipment every year. Here's how it works.
You're eligible to use Section 179 deductions if your purchases are less than $2,000,000 in a year, and you can deduct up to $500,000. The following items are deductible:
- Copiers, printer, and computer software (note: computer software must be "off-the-shelf" and readily available to public; not heavily modified for business use)
- Personal property
- Single purpose structures such as livestock or horticultural structures
- Storage facilities
- Vehicles (although there are more forms to fill out in this case)
Make sure you talk to your accountant or tax advisor to take advantage of tax deductions for your company. Call us today to put some tax deductible money toward a new copier or printer!