A Guide to IRS Section 179

Boost Profits and Invest in the Future: A Guide to IRS Section 179 

With tax season right around the corner, it's time to get a head start and take advantage of tax deductions and savings. The IRS Section 179 tax deduction offers immediate deductions on qualifying purchases for businesses planning to make substantial investments in technology. This is a practical option for reducing taxable income and reinvesting in the future of your business. 

What is IRS Section 179? 

IRS Section 179 allows businesses to deduct qualifying equipment expenses. This year, businesses can deduct up to $1,220,000 and depreciate 100% of the cost of eligible equipment bought or financed. To take advantage of the Section 179 deduction: 

• Equipment must be purchased, financed, or leased and in use by December 31, 2024.  
• Qualifying equipment purchases include IT infrastructure, managed software, phone systems, cybersecurity, surveillance systems, and other essential business technology and tools.   

Benefits of Section 179 for Technology Investments 

• Immediate Cash Flow Boost: Section 179 enables businesses to deduct technology costs immediately, which can improve cash flow by reducing tax liabilities. 
• Strategic IT Upgrades: Section 179 enables businesses to upgrade outdated systems without a significant financial burden, improving operational efficiency and enhancing security, compliance, and customer satisfaction.   
• Better Budget Forecasting: With an immediate deduction, companies can better project year-end financials and allocate resources toward critical initiatives without fear of overspending or reducing profitability.

Action Steps to Maximize Section 179  

Step 1: Evaluate and identify your technology needs, such as replacing outdated equipment or performing upgrades. 

Step 2: Map out a technology investment strategy for large expenses and maximize the deduction while aligning purchases with long-term goals. 

Step 3: Consult with your CPA to verify eligibility, ensure compliance, and understand how Section 179 fits with your larger financial strategy.  

Step 4: Complete equipment purchasing or financing and place equipment in service by December 31, 2024. 

Blue Sky Technologies Supports Your Technology Investment Strategy  

Section 179 is an easy win with benefits like boosted profitability and reduced tax liabilities. At Blue Sky Technologies, we strive to simplify technology and improve profitability, which is why we help our customers succeed through innovative, tailored technology. Whether it's IT infrastructure, cybersecurity, phone systems, physical security solutions, or a comprehensive solution with all of the above, we're here to help you find the right solution.