You’ve most likely put off upgrading your IT infrastructure for too long, but thanks to a special IRS tax code, now might be the perfect time to do so. Small businesses can take advantage of Section 179 of the tax code to deduct operating expenses, like your IT infrastructure. If you are looking for ways to reduce your taxable income while simultaneously improving your business, take advantage of all the deductions available!
What is Section 179?
Section 179 of the tax code allows businesses to deduct certain operating expenses from their taxable income. This deduction can be taken for a variety of costs, including but not limited to:
- IT services
- Hardware and software
- Office supplies and equipment
Why is this important for small businesses?
At Liberty Technology, we advocate for small businesses. We understand that they are always looking for ways to reduce their taxable income and save money. We also know that small businesses need the right IT setup in order for them to thrive. Section 179 can be a great way to improve your business’s IT while also lowering your taxable income.
How do I take advantage of this deduction?
If you are a small business owner, there are a few things you need to do to take advantage of the Section 179 deduction. First, you must ensure that your operating expenses are adequately documented. This means keeping receipts and invoices for everything from IT services to office supplies. At Liberty Technology, we ensure invoices meet the tax standard and save you the hassle. Once you have those documents, you need to file Form 4562 with your tax return. This form will help you calculate the amount of your deduction.
We hope this blog post has helped explain the basics of Section 179. If you have any questions, contact Liberty Tech today. We would be happy to answer them!