Most likely your customers are working on their year-end tax planning. If they’re seeking ways to reduce their tax liability, let them know that before the end of the year is the time to consider buying or leasing equipment. Section 179 of the IRS code allows an immediate deduction for depreciable business equipment, including copiers, printers, and other office technology purchased or leased before December 31st.
Section 179 Explained
The US Congress enacted Section 179 of the Tax Code to help small to mid-sized businesses. Under Section 179, companies can write off the total purchase price, financed total, or qualifying lease costs for qualified office technology purchased, financed, or leased in the current calendar year (2022).
The 179 Tax Deduction means that if your customers lease, purchase or finance approved office technology they can deduct the entire cost on their 2022 return. Leased equipment must be subject to a $1 buyout at the lease end to qualify for the deduction.
Section 179: Businesses Benefits
The original goal of Section 179 was to provide tax relief for small to mid-sized businesses to encourage them to invest in themselves contributing to a stronger economy. In fact, it’s one of the few incentives for small businesses included in many new tax bills and stimulus acts.
The deduction covers the lease or purchase of new and used office equipment. To receive the deduction, any equipment must be used more than 50% of the time for business purposes. Your customers can also take advantage of the benefits of Section 179 if they lease equipment with a qualifying finance agreement.
The major benefit of this code for leased equipment is that your customers can take the full deduction, while only paying small installments. Tax savings can even exceed their first year’s payments. That means they can actually earn money with financed or properly leased equipment!
The Bottom Line…
Every business uses technology and office equipment to operate. This means that your customers likely make multiple equipment purchases throughout the year. Section 179 makes investing in their business attractive from a tax perspective. As we reach the end of the calendar year, now is the time to upgrade!
If you would like more tips to help your customers make leasing or purchasing choices before the end of year deadline, call Impressions Solutions. We are always happy to help!
Impression Solutions Inc. is a value-add distributor of printing and imaging solutions and is an OEM full-line authorized distributor of Kyocera Monochrome and Color Printers, Multifunction Units, Printer Accessories, Printer Supplies and Customized Printing Solutions. Their headquarters is in Columbus, MS.
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