Helping Hand IT is your go-to guide for maximizing qualified 179 deductions for your computer and office system upgrades
Investing in your business NOW will bring big deductions from Uncle Sam on your 2019 taxes. Recent changes in tax Section 179 mean big savings for small businesses who invest in computer software, hardware, phone systems and other qualifying equipment before year end.
Contact Helping Hand IT before you make your purchases and we will not only make sure you have exactly what you need to upgrade your information technology systems, we can have it installed and ready to use before the December 31st tax incentive deadline.
What is Section 179?
Section 179 of the tax code was put in place to help small businesses invest in themselves. The code allows business to upgrade business equipment and deduct the full purchase price of qualifying equipment purchased or financed during the year. This means that buying or leasing equipment NOW before year end, will allow you to deduct the full purchase price on this year’s taxes!
According to the IRS website, this is one of the few government incentives available to small businesses that result in real tax benefits for small business owners. In the past, business owners who bought qualifying equipment had to wait years to write off the full amount of their business expenses through a process called depreciation. While it was better than no write off, it certainly wasn’t as advantageous as the current tax code which allows same year write offs on qualifying equipment.
According to the tax code, small businesses are eligible to write off qualified purchases up to $1,000,000 in 2019. There is a $2,500,000 spending cap on equipment purchases under Section 179, making this a true small business tax incentive. Additionally, Section 179 offers Bonus Depreciation on amounts over the $1,000,000 cap. The graphic below shows how Section 179 can reduce your tax liability at tax time.
How can Helping Hand IT help you?
Let’s say you need to upgrade your computer system and network and would like to maximize your savings and investment power using Section 179. Helping Hand IT is a one-stop shop that will run network and security assessments, review your system and software requirements and guide you through the purchasing process to ensure everything is Section 179 compliant.
- We run server assessments to make sure the equipment you are buying is sized correctly for your applications.
- As Dell Solutions Providers, Helping Hand IT can obtain large discounts for your purchase due to our volume of equipment and sales.
- Our experts develop a strategy for integration, installation and implementation of your equipment and software, so everything will be up and running for you by year end.
When you contact Helping Hand, you are more than just a number. We work to build relationships with clients and emphasize strong collaboration between your company and ours. Keeping your business connected with flawless IT and providing everything you need for your technology to operate successfully, is our mission.
What purchases qualify for the Section 179 Deduction?
As required by the tax code, in order to qualify for the Section 179 Deduction, the equipment listed below must be purchased and put into use between January 1 and December 31 of the tax year you are claiming.
- Computer Software
- Equipment (machines, etc.) purchased for business use
- Office Equipment
- Property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment)
- Certain improvements to existing non-residential buildings: fire suppression, alarms and security systems, HVAC, and roofing
- Business Vehicles with a gross vehicle weight in excess of 6,000 lbs.
The above equipment qualifies whether new or used (but must be new to you), and qualifies no matter if it was purchased outright, leased, or financed. This is great news if you are working under budget constraints for your upgrades.
You are not alone!
Helping Hand IT works with you to find the right products and services to fit your budget, then coordinates with our Dell Financial Assistance team to obtain a financial estimate which includes all software, hardware, shipping and labor. Most importantly, everything can be used with Section 179.
Helping Hand walks with you through every stage of the process. To start a conversation about your upgrade needs and how they will fit with Section 179 deduction for 2019, contact us, or visit our website, https://www.helpinghandit.com for more details!