It’s not quite holiday shopping season, but if you are considering upgrading your business IT infrastructure, best to make your purchases now. That’s because the Internal Revenue Service’s Section 179 tax benefits apply to equipment both purchased AND put into service this year (2021). With supply chain issues, it can be 8 weeks (or more) for some tech purchases to be delivered, leaving you precious little time to implement your business IT infrastructure equipment in time to qualify for this tax benefit.

Section 179 has been available for many years but there is no guarantee that the tax benefit won’t change or be ended, so waiting until 2022 carries some risk. In order for your company to take advantage of Section 179 for the 2021 tax year, purchases must be:

• Made before December 31, 2021 AND put into service by that time.
• $1,050,000 or less in total ($10,000 more than the 2020 limit).
• Used for income-producing activity.
• Usable for more than one year.
• Available to the general public.
• Subject to a non-exclusive license.
• NOT an excluded item (e.g., custom code, databases and websites).

Here are a few common items, including business IT infrastructure purchases, that qualify:

• Office equipment, including hosted or VOIP phone systems
• Computers, servers and other hardware
• “Off the shelf” software  (which has not been substantially modified)

For complete information on this tax code, visit the Section 179 website.

Not sure what your business needs, especially in terms of infrastructure? If you’re already an Internos client, contact your account manager. 

Not a client yet? Contact us or book a meeting, virtual or in person. There’s no obligation. We’re happy to help.