As you close out your financial records for 2019, have you spent the money allocated for capital expenditures this year? While you may not feel the need to spend all your capital investment money, it is wise to review what needs your business may have that you could provide via your capital investment line in your budget.
If you are looking to spend down your allocated budget for capital expenditures this calendar year, here are a few things to consider.
Eligible Property and Section 179
The 2019 deduction limit for Section 179 spending is $1 million, with the spending cap on equipment purchases at $2.5 million. While the Section 179 tax code can benefit any business, it has gained popularity in the small business sector. If you have a small or medium-sized business, writing off equipment purchases using this tax code could make a major impact on your company’s bottom line.
Eligible equipment purchases include tangible items, like a vehicle, machine, or even farm livestock. However, you can also write off eligible software for your company, as long as it is not custom to your business. Eligible purchases of software must be “off-the-shelf”, which means the software you purchase and write off is also available to the public.
Working with RWK IT Services
Knowing what type of software or other equipment could benefit your company as well as meet the Section 179 tax code can be confusing. However, with the guidance of your accountant and your IT services provider, you can quickly sort it out and begin to benefit from your purchases. The team at RWK IT Services excels at getting to know each of our clients, which means we are prepared to offer our recommendations for software and equipment that will increase your business revenue, customer experience, or employee productivity.
Call us today to tell us a bit more about your business and your challenges. We would be honored to get to know you and offer our recommendations for services, software, and equipment that could meet your needs and take your business to the next level. Be sure you call us soon in order to take advantage of your potential 2019 tax write-offs.