Maximize Your Deductions in 2022
If you need to buy soon, you may want to purchase by December 2022 so that your business may be able to deduct the full purchase amount from this year’s taxes. According to Section179.org, businesses may deduct the full purchase amount of qualifying equipment and/or software purchased during the same tax year. Below are some highlights about Section 179:
Physical property such as equipment and most computer software qualify for this tax break.
You can deduct up to $1.08M 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. 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/.