With Section 179 for 2018, businesses can get tax deductions for the purchasing of property, vehicles, and office equipment. These tax deductions for businesses can be a big boon for companies looking to upgrade systems, such as switching from a traditional networked printer environment to cloud-based printing.
What is Section 179 for 2018?
The Section 179 deduction of 2018 is the result of the Tax Cuts and Jobs Act of 2017. By incorporating this new tax law into 2018 accounting strategies, businesses can achieve significant tax savings.
However, these savings may only be temporary, and these significant tax cuts and deduction opportunities should be taken advantage of by businesses while they are available. Why? Because these massive tax cuts aren’t popular with everyone, and they have a chance of being repealed at some point.
What Businesses Can Get With the 2018 Tax Deductions
For now, beginning January 1, 2018, companies are allowed to get generous deductions for property and equipment. For example, deductions are enacted for up to $1 million for qualified capital property purchases not exceeding $2.5 million.
Other types of “property” such as machines, equipment, and vehicles, are eligible for significant tax deductions when they are purchased and, most importantly, used. Computer software may also be covered under these deductions. Thus, the full cost of buying new office equipment such as printers, copiers, or computers can be deducted for 2018. The tax incentives basically cover the cost of depreciation of these assets.
Limitations of Tax Deductions for Office Equipment
When looking at replacing office copiers and other machines, consider their usage to benefit from the Section 179 2018 deduction. One of the guidelines is that this equipment, such as office printers, must be utilized for business purposes for at least 50% of the time.
As already noted, Section 179 also has dollar limits as to the cost of new office equipment and how much can be deducted overall. The company accounting team should review all of the pertinent info to help build an appropriate strategy for office equipment upgrades and replacements in order to fully take advantage of all the available savings.
Examples of How to Best Take Advantage of Section 179
As the end of 2018 nears, businesses may be looking for smart ways to best take advantage of this law for 2018 as well as 2019. Potential office equipment upgrades include, of course, new computers and office copiers. Companies are also improving and streamlining supply chain management with IoT (Internet of Things) connected devices.
One of the biggest trends right now is to update old network-based printing systems with cloud-based printing. With new capabilities for workflow management and automation, cloud-based systems can improve business efficiency while saving money in the long run. This is money that can be saved even if the tax deductions for businesses are not available.
Cloud-connected printing systems need both software and hardware that can work with the integrated system, such as Xerox ConnectKey. By taking advantage of Section 179 in 2018, companies can overhaul old, slow, problematic printing systems and upgrade to a system that works across all operating systems and devices.
Plan to Take Advantage of Section 179 Deductions for 2018
By working with accounting and coming up with a workable equipment upgrade strategy, companies can take full advantage of the Tax Cuts while they last. These tax advantages for businesses may not be around after 2020.
Are you ready to save on taxes and upgrade your office infrastructure? For more information on upgrading your printer ecosystem, contact the team at Zeno Office Solutions today.