As the year comes to a close, many businesses are looking for ways to maximize tax savings—and IRS Section 179 Deduction of the Tax Code provides an excellent opportunity. With Section 179, your business can deduct the full purchase price of qualifying equipment and software, as long as it’s placed in service by December 31, 2024. This deduction makes it easier than ever to invest in essential infrastructure, security, and cybersecurity solutions that can help your business thrive.
What is the IRS Section 179 Deduction?
Section 179 allows businesses to deduct the cost of qualifying equipment or software purchased or financed during the tax year. Instead of spreading out deductions over multiple years, Section 179 enables a full deduction in the first year the equipment is put into service, giving businesses a significant boost in cash flow.
Here’s what you need to know to qualify:
- Deduction Limit: For 2024, businesses can write off up to $1,160,000 in qualifying expenses.
- Spending Cap: This deduction applies to purchases up to $4,050,000. Beyond this cap, the deduction begins to phase out.
- New and Used Equipment: Both new and used equipment qualifies as long as it’s “new to you.”
- Placed in Service Deadline: The equipment or software must be operational and in service by December 31, 2024, to qualify for this year’s deduction.
What Qualifies for Section 179?
Most tangible equipment qualifies, including:
- Infrastructure Solutions: Networking hardware, servers, data backup systems, and more.
- Security Equipment: Physical security products such as surveillance cameras, access control systems, and intrusion detection.
- Cybersecurity Solutions: Software and hardware specifically designed to protect against cyber threats, like firewalls, encryption tools, and anti-virus software.
- Windows 10 Replacements: This is an excellent opportunity to purchase replacement hardware to replace machines facing Windows 10 obsolescence next year!
By leveraging this deduction, you’re not only enhancing your business operations but also reducing your tax liability for 2024.
Baychester Associates: Your Partner in Qualified Equipment
At Baychester Associates, we specialize in delivering top-tier IT infrastructure, managed security solutions, and cybersecurity services tailored to the unique needs of businesses. Here’s how we can support your business in taking full advantage of Section 179:
- Managed Network Services: Keep your business connected and secure with reliable network infrastructure.
- Security Camera Solutions: Our Ubiquiti Unifi Protect security camera systems provide high-quality surveillance, giving you peace of mind while qualifying for Section 179.
- Cybersecurity Protections: Our advanced cybersecurity solutions, powered by industry-leading technologies, safeguard your digital assets.
By partnering with Baychester Associates, you’re ensuring that every investment in security, infrastructure, and cybersecurity serves your business for years to come—and brings immediate tax benefits under Section 179.
