If you own your own business, this article contains information you need to know going into the 2022/2023 tax season.
The Section 179 tax deduction for 2022 can help you write off thousands – if not hundreds of thousands – on eligible technological equipment. Here’s how it works.
What Is Section 179?
According to the IRS, Section 179 is a type of expense deduction that business owners are permitted to take due to purchases of qualifying equipment. You can also write off the depreciating value of your asset over the course of five years.
Example of Section 179 Deduction
Let’s say you purchased equipment that costs $100,000 and is used 100% for your business.
There are two ways you can write this equipment off – either depreciated over the course of five years as $20,000 per year or written off in the total amount of $100,000 for the current year. The latter is taking advantage of the Section 179 deduction.
You can take Section 179 if:
- The equipment is either financed or purchased
- The price at which you purchased it qualifies for deduction
For 2022, the Section 179 deduction is limited to a maximum of $1,080,000. With this in mind, talk to your accountant now about how you can qualify for this deduction moving into the 2022/2023 tax season.
Key Considerations for Upgrades
If you haven’t already taken advantage of this deduction or still have room for more purchases, here are some upgrades to consider.
VoIP (Voice over IP) Upgrades
Few things will worsen the public image of your business faster than a spotty phone system filled with choppy or dropped calls.
If your current VoIP system is giving you poor audio quality, you run the risk of negative customer service experiences, annoying background noise during important calls, or sloppy conference calls.
Here are some signs you should upgrade your phone system.
Your Phone System Doesn’t Support Remote Employees
Remote employees have existed for years, but a huge shift in remote work happened during the 2020 pandemic. As a result, almost half of companies today have remote employees.
If you’re one of these companies, you need your VoIP system to be able to support your remote workers.
If you upgrade your VoIP system to the cloud, your employees, whether in-office or remote, won’t need to be connected through the same network as your company’s physical phone lines. Instead, they can use a VoIP desk phone or a softphone to manage their work from anywhere.
Your Current System Has Security Flaws
With traditional phone systems, audio signals transmit your calls. Skilled attackers easily intercept these signals.
VoIP systems offer more privacy and higher security for businesses. Some VoIP systems can even offer specific compliance needs for certain industries, like HIPAA, PCI, and SOC 2 compliance.
Star2Star is one of the best VoIP systems for reliability, security, and functionality.
Computer Upgrades
Computer systems and features are constantly shifting and changing as technology evolves.
If you’re working with an outdated system, it may be time to upgrade.
Outdated Security
Outdated security is one of the biggest signs you should upgrade your computer system. If your current hardware isn’t compatible with new versions of an operating system, you could be putting your company’s security at risk.
Newer PCs have started using biometric security systems to help protect companies and their sensitive information. If you think you may need updated security, it’s probably time for a machine update.
Applications Take Too Long to Load
This one is self-explanatory. Slow applications mean less efficient operations, which ultimately costs you more money.
Multitasking Issues
In today’s day and age, multitasking is vital. If the computers you and your team are using have trouble running more than one application at a time, you should probably upgrade your machines.
Lenovo is a trusted computer brand that consistently stays ahead of its competition for security and functionality.
Get Expert Help and Save Money
The time to make purchases on qualifying equipment is coming to an end for 2022. Don’t hesitate – contact AngelCom IT Services so our team of professionals can help you get the upgrades you need to save money on 2022 taxes.
*Even though we’re expects in IT, we are not tax experts. Please consult your accountant for best practices for your business.