The end of the year seems to be a time of spending, but in case you haven’t heard, there are multiple money-saving opportunities for businesses this holiday season too.
Buy Computers, Software, Or Other Tangible Goods, And Save On Your Taxes with Section 179 and Bonus Depreciation
Last year, the “Protecting Americans from Tax Hikes Act of 2015” (PATH Act) was signed into law. This bill expanded the Section 179 deduction limit to $500,000. It helps businesses reduce their tax burden with accelerated depreciation on up to $500,000 in machinery, computers, software, office furniture, or other tangible goods.
In addition, 50 percent Bonus Depreciation has been extended through 2019. This means that businesses will be able to depreciate 50 percent of the equipment cost that they put into service this year.
If you want to take advantage of these tax incentives, you should act fast. Qualifying equipment and software must be purchased or leased and in place by midnight December 31, 2016.
Everyone’s situation is different, so consult with your tax professional for specific advice.
End-Of-The-Year Discounts And Incentives from Hardware and Software Manufacturers
Holiday sales aren’t just for consumer products. Vendors and manufacturers know that businesses are trying to take advantage of Section 179 incentives, and are all fighting for their share of investment dollars.
Hewlett Packard Enterprise, for example, is promoting a year-end server buyback program. They’re offering to buy back any brand of server at fair market value when you purchase one of their qualifying servers, and then providing an additional $400 credit with every trade-in.
Software vendors are also offering extended trials or heavily discounted first months as incentives to entice businesses into making a purchase before the end of the year.
If you’ve been considering any new hardware or software, now could be a terrific time to take advantage of tax savings and reduced hardware costs.
After all, no one wants to pay more than they have to on goods, services, and (especially) taxes!
If you’re ready to purchase new software or equipment, get in touch with your IT support provider immediately to schedule an IT planning session.
It takes time to research the best options for your business’ future plans, and to make sure you’re taking advantage of as many savings opportunities as possible, so don’t delay in reaching out to them.
As featured in the December 25th issue of The Press-Enterprise
