Does anyone else feel like 2021 flew by at lightening speed? It seems like spending and growth planning slowed down in 2020, as the world stood still trying to understand the effects of the pandemic. As businesses started to become more confident in the economy, it became much easier to start planning for future growth. There are still many challenges that remain as a result of the pandemic that are weighing on the minds of the C-Suite, with the highest emphasis being on staffing shortages.
Top Questions for Section 179
How Do I Maximize Productivity if I’m Short Staffed?
One thing has remained constant since the start of the pandemic. Staffing is one of the largest challenges we’ve been hearing from area businesses. For this reason, many companies are looking to invest in technology to streamline their projects and free up time for strategic initiatives.
When is the Right Time to Invest in Technology?
You may have heard the saying “Time is of the essence.” Technological investments are often easy to show Return on Investment (ROI,) however, with time being so precious when you are understaffed, when is the right time to buy?
Often times, around this time of the year, we hear, “We will probably wait until after the first of the year.” It may be due to technology being in your budget. It may be because decision makers want to wait until the holidays are over. Whatever the reason, the end of the year may actually be the best time to consider a hardware or software purchase.
Have You Heard of Section 179?
Businesses are always looking for ways to make a final push for financial impact before the tax year is over. This year is no different. Section 179 is an “IRS tax code that allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means, if you buy or lease a piece of qualifying equipment, you can deduct the full purchase price from your gross income, instead of depreciating it over time.”
This IRS law could help your company start the new year with a bang with new technology that makes financial sense on your budget. There’s even a calculator that you can try out to visualize a “potential” tax benefit using the IRS Tax Code.
With 2021 winding down, this may be a better time than any to purchase or lease equipment. The deduction is at a robust $1,050,000 this year.
As always, please consult with your accountant or financial advisor before taking advantage of Section 179. They can validate if this is the best route for your business.
For your chance to win a $50 Amazon gift card, tell us what your business initiatives are that would be impacted by the Section 179 Tax Code.