When a new employee joins your organization, chances are they are provided a computer that has been used several times in the past. It’s not uncommon for companies to attempt to stretch their computer system capabilities over the course of a decade, and as the dust settles in, it’s not a surprise when computer systems “all of a sudden” stop working.

We see technology as a way to make life simpler, yet when your tech starts to stop working, it steadily develops new issues and ultimately costs you more money in downtime and lost productivity than it would cost to acquire new devices.

Here’s the good news: The federal government understands this desire to save cash by updating your hardware and software less often–and they’re combating it with Section 179.

Exactly what’s the Section 179 Tax Deduction?

Well, instead of waiting on your devices to fall apart on you, Section 179 lets you deduct the full price of any qualifying equipment or software purchased or leased during the year. This includes:

  • Bought, financed or leased equipment
  • Desktops, laptops, tablets, mobile phones
  • Servers, printers, routers, network switches, network security devices
  • Off-the-shelf software (productivity, administrative, operating systems, etc.)

Now, there’s no need to put off purchasing or renting hardware and software when you can write-off the full amount. Businesses that purchase, finance or rent less than $2M in new or refurbished businesses technology qualify. You simply need to make sure the equipment and software are placed into use by December 31, 2017.

If you use the computer in your business more than 50% of the time, you can deduct the entire cost under a provision of the tax law called Section 179.

Under Section 179, you can deduct in a single year the cost of tangible personal property (new or used) that you buy for your business, including computers, business equipment and machinery, and office furniture.

Starting in 2018, there is a $1 million annual limit on the amount you can deduct under Section 179 (adjusted for inflation each year).

For most scenarios, applying the tax break will be as simple as deducting the full amount of the purchase as a Section 179 expense; although, in some cases it can be a bit trickier.