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Section 179 tax deduction

Grow and Save with Technology Tax Deductions

Grow and Save with Technology Tax Deductions
For many businesses, tax season can be the most stressful time of the year. Fortunately, there are technology tax deductions out there, including Section 179. Not only can this deduction help businesses save on expenses — it can also help them grow.

The Section 179 tax deduction allows all businesses to deduct the full purchase price of qualifying equipment or software bought, financed or leased during the tax year from their gross income. This deduction helps ease tax burdens (especially for small businesses) and encourages companies to remain competitive in their market by buying the new technology they need.

Let’s explore how you can take advantage of Section 179 for the remainder of the year.

1. What Products Qualify? Luckily, most tangible goods used by American businesses qualify for technology tax deductions. These include:
  • Purchased, financed or leased equipment
  • Workstations, laptops, tablets or smartphones
  • Servers, printers, routers and network security appliances
  • Off-the-shelf software
There’s no need to put off buying new equipment for your office until the end of the year. Instead, you can make the necessary investment at any point and still reap the benefits provided by the U.S. government. 2. Are There Any Limitations? Section 179 does come with a few limitations. The first is that qualifying equipment and software must have been purchased, financed or leased between January 1st, 2022, to December 31st, 2022. Secondly, the items must be used for business purposes more than 50% of the time. To determine the monetary amount eligible for technology tax deductions, simply multiply the cost of the qualifying product by the percentage of business use. Lastly, the amount you can deduct for 2022 stands at $1,080,000. This also limits the total amount of equipment purchased to $2,700,000 in order to qualify. After this limit, the amount phases out dollar for dollar, or the deductible amount begins to decrease. 3. How Can You Get Started? Once you know which products you can deduct within your limit, you can start the deduction process. When you do your taxes, you will use Part 1 of Form 4562 to claim your deduction. On this form, you’ll list the qualifying products and their costs up to the deduction limit.

Take the Next Step

With technology tax deductions like Section 179, your business can feel more confident that the new technology you invest in maximizes your costs. And, by using the most cutting-edge technology, you can transform your business operations to be more efficient, productive and in line with the modern work experience. If you’re interested in learning more about what technology your business could benefit from and help you qualify for year-end savings, consult our IT experts. We can help ensure you don’t miss out on savings and leverage the best equipment out there. If you want to learn more about IT tools and strategies, check out additional blogs in our resources section.

Section 179 tax deduction

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Jim Harryman

Jim is the fearless leader of the Kinetic team. He founded Kinetic more than two decades ago with one simple purpose – make technology do what it promises to do. He has spent the last 25 years doing just that. Every IT system Jim mans is fully subservient to its owner. When he isn’t reveling in new technology, he spends time with his wife Julia and their two sons who are grown, married, and both expecting babies.

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Meet CJ Jackson, a technical expert with 12 years in customer service and a tech journey sparked by the Apple Store Genius Bar. Recognized for patient issue resolution, CJ excels in teaching and empowering users. As Kinetic’s Configuration Specialist for 3 months, CJ is passionate about simplifying lives through tech. Beyond work, CJ explores cuisines, enjoys concerts, and embraces RomComs. The motto: Choose what’s right over what’s easy. CJ aspires to be remembered as a happy, eager, and passionate soul, inspired by daily opportunities to make a difference. Expect tech-savviness, culinary adventures, and unwavering commitment to everything done.

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Richie Owen is an adept IT professional known for his innovative problem-solving. With a strong background in security systems for financial institutions over the past nine years, Richie excels in resolving networking and cabling challenges. Off-duty, he’s a bass-playing musician and a dirt bike enthusiast. In his six months at Kinetic, Richie has demonstrated his expertise, further supported by almost a decade of experience in low-voltage systems. He values human connections, citing music as his perpetual motivation. Richie’s love for limeade with tea and his belief that people make life meaningful reflect his distinctive character.

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Chad bought his very first Mac as a senior in high school and hasn’t looked back since. To him, pushing the limit involves figuring out just how far he can push the performance on a Mac and testing his own IT knowledge and capabilities at the same time. This Cowtown native is super handy when it comes to configuring and deploying business networks and is one of 14 people on the planet who actually knows where ALL of the wires go.