Holiday tax treats for small businesses
The holidays are filled with traditional treats, warm family meals, well wishes, and of course, gifts. While you and your cherished ones trade symbols of love in brightly wrapped packages, don’t forget your business, who might be looking in from the sidelines, bashfully observing the festivities and feeling incredibly left out. Before the year comes to an end, there is a gift that will bring tremendous holiday cheer to your small business: the 179 tax deduction code.
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What is the 179 tax deduction code?
In the United States, Section 179 of the IRS tax code states that businesses can deduct the full purchase price of relevant equipment or software that was bought or financed during the tax year. This not only encourages business owners to invest in their own businesses, but stimulates local economies. Previously, companies could only write off part of the purchase price over a period of time, such as the course of an item’s life. Now, you can write off equipment for the entire amount within the year that it was bought.
What qualifies under section 179?
Most tangible personal property purchased primarily for business use is eligible for deduction. That means that a retail store could improve the experience for both their customers and staff by investing in new POS technology, and then completely write off that expense. EMV-related upgrades, equipment or machinery such as refrigerators, office equipment, software, printing equipment or signs, upgrades to a store that make the business more energy efficient as well as certain structural changes, such as walls, fences and paved parking area, could also fall under section 179.
Before the holidays are over, take advantage of this ephemeral tax break. Consider that your store might like some shiny new tech. As the popular saying goes: good things come in small packages, and tax deductions can certainly fall into this category. To read more about this win-win situation, consult the official Section 179 site.
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