Business owners looking to take advantage of year-end tax perks should make plans quickly for the 2023 calendar year. According to ITC, businesses can use up to $1,160,000 in deductions on technology-based equipment and services to keep their businesses safe throughout 2024 and beyond.
What Qualifies?
There are many different types of technology that will help businesses gain a financial edge at tax time. A few of these include managed services software, business equipment, and cyber security tools.
Section 179 also notes that property acquired by a business to conduct business also qualifies. This includes certain types of software, alarms and security systems, and some tangible personal property used for business purposes.
A few things you might consider is the year wraps up include:
- VoIP services. Your VoIP services may be covered if it’s considered off-the-shelf software. Further, your cabling, networking, and computer systems, including phones and tablets, may also qualify for Section 179.
- Cyber security software. Cyber security software – ask ITC about a custom package right for your business – can help protect your business from security breaches. Software used to protect remote workers and reduce your vulnerabilities can be a valuable deduction this year and benefit your business for years to come.
- Overhead paging system. The hardware and software used to communicate with your employees throughout your property are end-to-end solutions that can save you on your 2023 taxes.
ITC explains that there are a few exceptions to section 129. Property that you received as an inheritance, real estate, and additions to your structure, such as an HVAC unit, likely do not qualify. However, the majority of technology upgrades will, and ITC’s experts can help you choose the right hardware, software, and equipment to keep your business safe online and in the real world.
