With 2020 going out with a bang (or more accurately, a spike), business owners welcome the great news of increased year-end tax deductions. With Section 179 2020 offering significant tax relief, small businesses can end the year on a high note with upgraded technology to make 2021 a great recovery year.
The Tax Cuts and Jobs Act, which took effect in 2018, introduced some eye-popping adjustments to Section 179. Combined with bonus depreciation, they put more money into your business investment budget. These changes include the following:
That means that you take the full depreciation in the first year, instead of spreading it out over several years. While bonus depreciation only applied to new equipment in the past, it now also applies to used equipment.
For example, a business takes advantage of the opportunity to replace aging computers and install modern video conferencing technology. With qualifying expenses totaling $1.25 million, the business qualifies for the $1,040,000 deduction. It then takes the bonus depreciation for the remaining $210,000. In the current 21% percent small business tax bracket, the investment gains $262,500 in tax write-offs.
With the December 31 deadline fast approaching, now is the time to start making strategic technology investments. You might upgrade remote worker security to protect business data, for instance. Or you can take the opportunity to beef up conference room equipment for expanded video conferencing capabilities.
Count on the modern technology expertise at eMazzanti to maximize the tax savings available from Section 179 2020. They’ll guide you through the hardware and software options available and help to forecast your future technology needs. Contact one of our Section 179 technology specialists today to begin the process.
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