Understand the Importance of Tax Code 179 for your Small Business

December 3rd, 2019 by admin

The Tax Cuts and Jobs Act (TCJA) has been in effect for over a year, however there may be business owners and decision makers who have not fully understood the importance of this utilization.

According to the official IRS website:

Section 179 allows taxpayers to deduct the cost of certain property as an expense when the property is placed in service.  For tax years beginning after 2017, the TCJA increased the maximum Section 179 expense deduction from $500,000 to $1 million. The phase-out limit increased from $2 million to $2.5 million. These amounts are indexed for inflation for tax years beginning after 2018.

The Section 179 deduction applies to tangible personal property such as machinery and equipment purchased for use in a trade or business.

With this in mind, business owners and decision makers are offered the opportunity to purchase new office equipment by December 31st and to write off that expense in their 2019 returns.

At UTEC, we would like to advise our clients that purchasing new equipment by December 31st, will make them eligible for these deductions, but more importantly, we offer office productivity gains with technology advancements.

UTEC carries Sharp's line of multifunction printers (MFPs), designed to make device setup easier and faster. These are not your typical all-in-one copier, printing, faxing and scanning devices. Precision engineered to help increase workflow efficiency and provide exceptional image quality, Sharp MFPs are easier to operate, control, monitor, manage and maintain, helping take your business to the next level of productivity and performance. To arrange a professional consultation with a UTEC specialist, please email our Director of Sales, Dan Heimler.

All business owners and decision makers are advised to contact their tax accountant for a full understanding of the impact of TCJA and tax code 179. To review a calculator to determine your tax savings, please click here.

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