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Ways To Reduce Your Taxes for 2015

Monday, November 02, 2015
As we’re nearing the end of the year, it’s time to start thinking about the Section 179 tax break and how it can be applied to business purchases. This is a great opportunity to maximize your purchasing power by taking a large tax deduction on qualifying equipment.

The current limit for 2015 is still $25,000 with no bonus depreciation. However, considering past years, this limit will likely increase in mid-December. In 2014, the limit was reinstated to $500,000 with just 12 days left in the year. Since this has been the case for the last 5 years, It’s best to plan for something similar to happen this year.

How does it work?

The Section 179 tax code allows business owners to deduct the full purchase price (up to $25,000 as of this posting) of purchased or leased equipment from your gross income instead of requiring the cost to be depreciated. Once the equipment is purchased, you will complete a special IRS form and you’re all set!

What qualifies for the deduction?

Any physical equipment or software that is purchased for business use and put into production between January 1, 2015 and December 31, 2015. This includes computers, associated hardware and “Off-the-Shelf” Software. Off-the-Shelf is any software without a custom code, that is available for the general public and is used in your business as an income producing activity.

Use it or lose it!

This tax code is not guaranteed next year and can change without notice. It’s important to take advantage of this offer while you can. If you plan on purchasing business equipment including computer hardware or software, it’s financially in your favor to make those purchases before December 31, 2015. Use this handy calculator to see how much you could save.

What should you do now?

  • Schedule time to talk with your financial advisor or accountant to determine how your business can best utilize this tax break
  • Bookmark the Section 179 website and check for updates throughout December. Also watch for the December IT Resource newsletter for an update (if there is one available)
  • Contact your sales rep or our sales department and we can begin planning these purchases
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