Congress clamped down on the SUV loophole in October 2004, but the rest of Section 179, designed to stimulate business spending with an up-front tax break, remains in force and has even improved with age. Most business property that is useful for a few years is accounted for as depreciating over time. For tax purposes, a portion of the cost can be deducted each year. What Section 179 does is allow a business to receive all those tax benefits in the first year. In 2003, the one-year write-off limit was quadrupled from $25,000 to $100,000. Indexed for inflation, that amount is now $125,000. One other important change came through in 2003. The IRS added off-the-shelf software to the list of eligible property under Section 179. Computer hardware was already on the list. That means that any computer software you purchase through the end of this year may qualify for a complete write-off on your taxes for the coming year. You could think of it as a giant rebate – spend money in this calendar year and get a big chunk of it back in the next year.
There may never be a better opportunity to purchase computer hardware and software for such a small net cost to you. If you’ve been thinking about an upgrade or replacement, call and talk to us. They’ll be happy to be sure you get the most bang for your buck!
Carl Mazzanti is Co-Founder and President of eMazzanti Technologies, Microsoft’s four time Partner of the Year and one of the premier IT consulting services for businesses throughout the New York metropolitan area and internationally. Carl and his company manage over 400 active accounts ranging from professional services firms to high-end global retailers.
eMazzanti is all about delivering powerful, efficient outsourced IT services, such as computer network management and troubleshooting, managed print, PCI DSS compliance, green computing, mobile workforce technology, information security, cloud computing, and business continuity and disaster recovery.
Carl Mazzanti is also a frequent business conference speaker and technology talk show guest and contributor at Microsoft-focused events, including frequent prominent roles at the Microsoft Inspire (Worldwide Partner Conference / WPC).
Carl, a serial Entrepreneur, gives back to the community through Entrepreneur teaching engagements at Georgetown University, the company’s ocean wildlife conservation effort, the Blue Project, and Tree Mazzanti.