
A gift from Uncle Sam
Marketing SuganoShare
No one is a big fan of Uncle Sam. He and his buddies at the IRS come around each year with their hand out, just to take your hard earned money. Business growth and scalability can be an uphill battle when you have tax season looming. Cut Uncle Sam a little slack though, he did create section 179 for business owners just like you - making your investments no longer a struggle but a catalyst for growth instead.
What is section 179?
This tax deduction is available to SMBs that purchased qualifying equipment during the tax year. Eligible businesses can write off the entirety of those purchases (up to one million dollars). So if your business purchased $100,000 in new computers, you can write that off! Keep in mind that this is not included in your standard tax preparation. You will need to elect to claim that property and fill out an additional tax form. To elect to take the Section 179 Deduction, simply fill out Part 1 of IRS form 4562 and attach it to your tax return.What is considered qualifying equipment?
This is where Uncle Sam has your back. Just about all tangible business equipment can be included. Also, it doesn’t have to be brand new (just new to you). The items can be used, leased, or even financed, just ensure the purchase was made within the tax year. More often than not, SMB’s purchase needed equipment throughout the year so this deduction encourages businesses to keep doing so. The following items are considered qualifying by IRS.gov.- Equipment (machines, etc.) purchased for business use
- Tangible personal property used in business
- Business Vehicles with a gross vehicle weight in excess of 6,000 lbs.
- Computers
- Computer “Off-the-Shelf” Software
- Office Furniture
- 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.