Section 179 of the U.S. internal revenue code is an immediate expense deduction that business owners can take for purchases of depreciable business equipment instead of capitalizing and depreciating the asset over a period of time.
Section 179 allows you to write off what you spend on new IT hardware and software this tax year. This means you can deduct the full purchase price on new equipment and software. Instead of it depreciating over the next few years. For example, you could write off up to $1,050,000 this tax year. Read more about it with your CPA in this comprehensive guide.
The Section 179 deduction can be taken if the piece of equipment is purchased or financed and the full amount of the purchase price is eligible for the deduction.
Your purchases need to be put into service before the end of the day on December 31. All purchases made in the last few months are applicable if you submit the service by December 31. Considering that the technology supply chain is experiencing issues, now is a good time to invest in anything you need for the coming year. So, take action to set your business up for the new year.