If you’re planning to upgrade your office equipment, including printers, MFDs (Multifunction Devices), wide-format printers, production printing solutions, mailing equipment, and computer systems, understanding Section 179 could be a game-changer for your business in 2024.
What Is the Section 179 Deduction?
The Section 179 deduction allows businesses to deduct the full cost of certain qualifying purchases immediately, rather than spreading out the deduction over several years through depreciation. This means that instead of waiting to recoup the expense, you can write off the entire purchase amount in the year you put the equipment into service.
For 2024 (for taxes filed in 2025), the maximum deduction limit is $1,220,000. This deduction applies to a wide range of business equipment, including the office technology we sell at Higher Information Group, such as printers, computers, and mailing solutions.
How Does Section 179 Work?
When you buy a piece of qualifying equipment and put it into service during the tax year, you can claim the Section 179 deduction on your taxes, reducing your taxable income by the full amount of the purchase. This deduction applies whether the equipment is new or used, as long as it’s used for business purposes more than 50% of the time.
Here are a few types of equipment that may qualify:
- Printers, MFPs, and Wide-Format Printers: These essential tools for many businesses are fully eligible for the Section 179 deduction.
- Computer Equipment: Laptops, desktops, and related peripherals used for business purposes can be written off.
- Mailing Equipment: If you’re upgrading your mailing systems to streamline your business operations, you may deduct the full cost in the year of purchase.
2024 Limits and Considerations
The maximum deduction you can claim under Section 179 for 2024 is $1,220,000, and this deduction begins to phase out when your total equipment purchases exceed $3,050,000. Additionally, keep in mind that bonus depreciation, which allows for further immediate deductions, is being phased out after 2024, making this year critical if you’re planning to make substantial equipment investments.
The Time to Act Is Now
To take advantage of the Section 179 deduction for 2024, your equipment must be purchased (or financed/leased) and put into service before midnight on December 31, 2024. This means that if you’re thinking of upgrading or adding to your office equipment, now is the time to act. Waiting until the last minute could mean missing out on the opportunity to deduct the full cost.
Why Should You Take Advantage of Section 179?
- Immediate Tax Savings: Instead of waiting years to recover your investment through depreciation, you can write off the full amount in the year of purchase.
- Improved Cash Flow: Deductions like Section 179 reduce your taxable income, potentially freeing up capital that you can reinvest in your business.
- Boost Productivity: By upgrading to newer equipment, you can enhance efficiency, reduce downtime, and improve overall business performance.
Don’t Wait—Upgrade Now!
At Higher Information Group, we offer a wide range of office equipment, from multifunction printers to production printing equipment and mailing systems, all of which may qualify for the Section 179 deduction. But remember—the clock is ticking. Your equipment must be purchased and in use before the end of the year to take advantage of this valuable tax benefit.
Ready to upgrade your office equipment and maximize your tax savings? Contact us today to learn more about our selection of business equipment and how we can help you make the most of Section 179!
Note:
We are not tax advisors. Always consult with a tax professional to determine the best tax strategies for your business.
