Section 179 Guidelines
If you’ve been considering a tech refresh to keep up with the new normal of hybrid & remote teams – new laptops for work-from-home employees, upgrading your conference room, or a thermal screening solution for the office – now is the time to take advantage of tax cash flow savings.
Thanks to Internal Revenue Code Section 179, businesses can deduct up to $1 million in qualifying purchases from their 2020 income. If you’re not familiar with the Section 179 deduction, the guidelines are pretty straightforward:
- Section 179 allows businesses to deduct the full purchase price of qualifying equipment purchased during the tax year. Most tangible business equipment and off-the-shelf (i.e. not custom) software qualifies. See this list for examples of qualifying purchases.
- The equipment and software must be purchased or financed and in place by midnight December 31, 2020 to qualify for the 2020 tax year deduction.
- The deduction begins to phase out if more than $2.5 million of equipment is purchased. Larger businesses that spend more than $3.5 million on equipment won’t get the deduction, but they can take advantage of the 100% Bonus Depreciation in effect for 2020.
- Eligibility for 2020 Section 179 tax deductions are unaffected by any pandemic-related financial assistance a business has received. In other words, if a company received a PPP loan or any other pandemic-related assistance, they may still claim their Section 179 deduction.
Prepare Your Business For Another Successful Year
Make the most of the Section 179 deduction with technology that can help move your business forward in 2021. Below we explore the top three technology investments to consider.
1. Upgrade to Windows 10 PCs or Laptops
If you still have computers running Windows 7, replacing these PCs should take top priority. Windows 7 reached end of support on January 14th, 2020. Continuing to run Windows 7 or even older operating systems makes you an easy target for hackers and viruses. Plus, old devices can take a serious toll on productivity. After about 3 years, PCs slow down substantially and become much more prone to failure.
Taking a proactive approach and replacing computers before they become a hindrance can save you time, money, and lots of frustration in the long run. Luckily, there are tons of great new PC options out there for any budget.
2. Create a Smarter (and COVID-safe) Meeting Room
For most offices, hybrid meetings with in-office and remote attendees have become the norm. But the technical difficulties caused by older conference room equipment can make meetings a recurring pain point.
The latest AV solutions – touch screens, HD cameras & room systems – make it easier to collaborate and keep meetings on schedule. For example, Teams Collaboration Displays bring together video conferencing, digital whiteboard and presenting in an easy-to-use touchscreen display. Additionally, with built-in cameras, speakers and microphones, everyone can be seen, heard, and actively participate in group discussions, whether they’re in the meeting room or joining from home.
3. Strengthen Your Network Security
With more hackers setting their sights on small and midsize businesses (ransomware incidents alone are up 715% in 2020), network security has never been more important. Further, with more employees working outside the office, businesses need to re-assess their security infrastructure to ensure data is protected no matter where employees are working.
Not sure how your security stacks up? Our team can help with a Security Health Check to identify and mitigate immediate security risks before they are exploited.
