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Save on Taxes with Section 179 Deductions

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It’s hard to believe the end of 2023 is nigh but here we are updating our blog on Section 179.

“Let me tell you how it will be
There’s one for you, nineteen for me
‘Cause I’m the taxman
Yeah, I’m the taxman”

The Beatles didn’t love paying more taxes than they had to and I suspect you don’t either. So if you have equipment purchases to make, you can take a tax deduction for 2023 using Section 179 and fully depreciate those assets if you buy the equipment this calendar year. Typically assets are depreciated over time so you can only deduct a portion each year. Details are below:

 

  • Physical property such as equipment and most computer software qualify for this tax break.
  • You can deduct up to $1.16M for qualifying purchases reducing the taxable income on this year’s tax return.
  • You cannot deduct more than your income.
  • It must be used in the same year.
  • Not all items may be eligible, so please consult with your CPA.

Mode5 prepares three-year Technology Roadmaps for all of our clients to plan for their future. These roadmaps are to try and help our clients succeed through their technology. By keeping your equipment and software updated, you can improve IT security, work more efficiently, and serve your clients better. If you have any roadmap items due, now is a great time to upgrade.

Call your Mode5 Client Account Manager to find out what equipment or software needs updated/upgraded soon, according to your Technology Roadmap, that could maximize your deductions in 2022.

Need more information on Section 179? Please visit the following resources: https://www.section179.org/section_179_deduction/ or https://bench.co/blog/tax-tips/section-179-deduction/.

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