eMazzanti Notes Year-End IT Tax Deduction for Businesses
Hoboken, New Jersey -December 11, 2012—Many companies are looking to spend unused budgets for new computer-related projects in 2012. U.S. business customers can get a benefit on their 2012 Tax return when they purchase computer hardware and software before Dec 31, 2012. Under Section 179, Tax Deductions limits for 2012 are $139,000 on equipment purchases of up to $560,000. eMazzanti Technologies, an IT expert and computer consultant serving the Hoboken, NJ and New York City areas, can help interested businesses.
“Many businesses may not know about this IT related tax deduction, so we’re trying to get the word out,” noted Jennifer Mazzanti, president, eMazzanti Technologies. “This is a great way to jump-start 2013 projects right now.”
Section 179 Facts
Section 179 of the IRS Tax Code allows a business to deduct, for the current tax year, the full purchase price of financed or leased equipment and off-the-shelf software that qualifies for the deduction. The equipment purchased, financed or leased must be within the specified dollar limits of Section 179, and the equipment must be placed into service in the same tax year that the deduction is being taken (for tax year 2012, this means the equipment must be put into service between 01/01/2012 and 12/31/2012).
The stimulus acts over the past several years have generously increased the limits of the Section 179 Deduction and also added a one-time “Bonus Depreciation” on equipment that exceeded the deduction limit. A total of five stimulus acts have extended and enhanced these tax incentives
The most important difference between Section 179 and the one-time bonus depreciation is that it pertains to both new and used equipment qualify for Section 179 Deduction, while Bonus Depreciation covers new equipment only. Bonus Depreciation is useful to very large businesses spending more than $560,000 on new capital equipment in 2012; also businesses with a net loss in 2012 qualify to carry-forward the Bonus Depreciation to a future year. When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation – unless the business has no taxable profit in 2012.
“Most equipment that businesses purchase or lease will qualify for the deduction,” said Mazzanti. “Businesses can call us for more details, especially as it pertains to computers and software.”
Please keep in mind that to qualify for the Section 179 Deduction, the equipment listed below must be purchased and put into use between January 1, 2012 and December 31, 2012.
■ Equipment (machines, etc.) purchased for business use
■ Tangible personal property used in business
■ Business Vehicles with a gross vehicle weight in excess of 6,000 lbs (Section 179 Vehicle Deductions)
■ Computer “Off-the-Shelf” Software
■ Office Furniture
■ Office Equipment
■ Property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment)
■ Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes).
About eMazzanti Technologies
With a company name that sounds more like a purebred, high-performance sports car than a IT support and consulting firm, eMazzanti Technologies is all about delivering powerful solutions in a variety of Outsourced IT services, such as cloud computing, managed printing services, PCI DSS compliance, computer network management, network troubleshooting, business continuity and disaster recovery, green computing, mobile workforce technology, information security, cloud computing, cloud computing services, and business information optimization in the most efficient manner possible. The Hoboken, N.J., firm is located in one of the most densely populated – and competitive – regions in the U.S. It provides business technology consulting services for companies ranging from home offices to multinational corporations in the New York metropolitan area, the United States and throughout the world. eMazzanti Technologies is Microsoft’s 2012 Partner of the Year for the third year, WatchGuard’s Partner of the Year for three years running and made the Inc. 5000 for the third year in a row. For more information contact: Carl Mazzanti 201-360-4400 or emazzanti.net. Twitter: @emazzanti , Facebook: Facebook.com/emazzantitechnologies.