Have you heard about end-of-year tax savings on equipment and technology/software purchases? Section 179 of the IRS tax code allows businesses to deduct potentially the full purchase price of qualifying software and/or qualifying equipment -- printers, servers, hard drives, plasma screens, tablets, mobile devices, network switches, etc. The software or hardware must be purchased and implemented during the tax year.
What you need to know about Section 179:
- If you buy or lease qualifying software/equipment, you can deduct potentially the full purchase price from your gross income (assets must be put into service between January 1, 2012 and December 31, 2012, for example).
- Allows for $139,000 to be fully deducted from current tax year income rather than being depreciated over several years (at the time of this post).
- Total spending must not exceed $560,000 (at the time of this post).
Many of you reading have a vested interest in these important tax savings and Godlan is here to assist with the ERP and consulting needs of today's manufacturers.