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Save on your 2019 IT purchases with Section 179 tax deductions

“Save Money” by Got Credit is licensed under CC BY 2.0

Increased limits and new tax rules may significantly offset the purchasing and leasing of business equipment for the year, but the equipment must be placed into service before December 31st.

What Is this?

The IRS states Section 179 of the Tax Cuts and Jobs Act of 2017 allows businesses to deduct the full price of qualifying equipment, including hardware & software, purchased or financed during the tax year.  This tax deduction is limited to $1 million for 2019.

What purchases qualify?

Most new and used (must be new to you) equipment purchased outright, leased or financed qualifies, provided it is placed into service by December 31 of the tax year claimed.

Why is this important?

  • Microsoft is ending support and security updates for Windows 7 and Server 2008 in January, and this deduction could completely offset replacement costs.
  • Equipment upgrades can increase productivity, improve your IT security posture, and meet demanding new regulatory requirements.
  • New and growing businesses can expand without having to amortize these purchases over the course of several years.

Whatever the reason, the Section 179 deduction may significantly offset the purchasing and leasing of equipment by providing an immediate sizeable tax break. However, you must finalize equipment purchases and leases now to benefit.

RWA is here to help you. Contact us now for your IT purchasing, leasing, installation, project management and other technology support needs.

For more information on this tax deduction, please visit the Section179.org website and consult your tax, legal and accounting advisors.

RWA is an Information Technology company and Managed Services Provider. We do not provide tax, legal or accounting advice or opinions. This material is for general information purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.