Windward Insider Blog
Tax Deductions are available for your Software Purchases
Are you an American based business? If so, then we have great news for you! You are then officially eligible for Section 179 of the IRS tax code!
Now if you are like most people, you probably do not know much about the IRS or its subsequent tax codes and laws. Not to worry though, because luckily for you we have interpreted Section 179 on your behalf!
So here it is - Section 179 of the IRS tax code gives your business the ability to deduct the FULL PURCHASE PRICE from your gross income of the software and/or hardware purchases (or those financed) during the tax year. This is a brilliant incentive that was created by the U.S. government to encourage businesses (like yours!) to buy software and hardware, and essentially invest in your own business to grow and expand.
The tax savings are actually quite significant as well. According to the Section 179 website, the below is the direct simplified view of the information in terms of the cost savings available:
2012 Deduction Limit = $139,000
This is good on new and used equipment, as well as off-the-shelf software.
2012 Limit on equipment purchases = $560,000
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced.
Bonus Depreciation = 50%
This is taken after the $560k limit in capital equipment purchases is reached. Note: Bonus Depreciation is available for new equipment only. Bonus Depreciation can also be taken by businesses that will have net operating losses in 2012.
Now, important to note here is that the opportunity to reap this tax deduction WILL evidently expire by the end of the 2012 year. Unfortunately, there is no clear direction if it will be back for next year or not - so you best take advantage of the huge saving possibilities while you can!
Here's an example what of Section 179 can be offering your business:
What does Section 179 mean to my business? Well...
- $10,000 software investment along with
- $10,000 hardware investment
That would be a total tax deduction of $20,000 of profit your business generates. Assuming a tax rate of 35% in most small businesses this would mean a stay from paying tax to the tune of $7,000.
As a business owner, you tell us what an additional $7,000 can do for your business. The savings are abundant, you simply need to take advantage of the opportunity!
The bottom line is the US Government is taking a vested interest in their country's business prosperity, just as we are at Windward Software. Our motto at Windward Software is "We help you run your business, instead of just reporting on it".
We believe that with our simplified business management solutions we are helping to buy back your time as a business owner. Our software is so easy, yet comprehensive it will allow you to stop "putting out fires" or doing "daily maintenance" and allow you to get back to actually running and managing your business by making calculated and logical decisions to grow your business and maintain success.
So, get in touch with us today and see how we can provide cost effective solutions to help you to start working smarter today. After all, with Section 179 in play, it is all tax deductible too. That is a win-win situation to effective business management.
With Windward Software offices located in Dallas, Texas and Chicago, Illinois we are invested in the US economy to spur growth as well. So, call us toll free in North America today at 1-800-663-5750 or visit us at http://www.windwardsoftware.com/ and learn how our integrated solutions will benefit your business.
For more detailed information on Section 179, please visit http://www.section179.org/index.html
By: Calum Lloyd