eMazzanti Technologies | Technology Newsletter | Hoboken, NJ – New York, NY | November 2016

This year, small and mid-size businesses deduct up to 20X more in computers and software purchased using a much larger section 179 tax deduction

If you have been putting off a substantial computer systems upgrade, 2016 is an excellent year to move forward. Yes, this is the year to begin enjoying the full benefits of modern technology. Because, the break you have been waiting for is here in the form of a greatly expanded Section 179 tax deduction.

The “Protecting Americans from Tax Hikes Act of 2015” (PATH Act) became law on December, 18, 2015. The bill increased the Section 179 deduction limit from $25,000 to $500,000 a 20-fold increase. Although the boost to $500,000 was made retroactive to 2015, it came too late in the year to plan major technology purchases.

Section 179 Tax BreakAs it now stands, Section 179 will remain at the $500,000 level permanently. And, the spending cap where the Section 179 deduction will phase out dollar-for-dollar, has been increased from $200,000 to $2 million. Additionally, future Section 179 caps will be indexed to inflation in increments of $10,000.Read more →