As the year draws to a close, many businesses are looking for ways to maximize their end of year budgets and reduce their taxable income. One tax benefit that can help organizations set themselves up for success in the new year but often gets overlooked is leveraging Section 179 of the IRS tax code.
If you’re running a business, understanding and utilizing Section 179 can significantly reduce your taxable income, especially when it comes to upgrading essential office technology. This isn’t just about saving money; it’s about smart, strategic investments that can boost productivity, streamline operations, and prepare your business for future growth.
If your office is still relying on outdated printers, displays, or manual workflows, now is the perfect time to consider strategic investments that can improve productivity, security, and efficiency — all while potentially reducing your tax liability. Let’s dive into some of the top office tech investments you should consider making before year-end, and why they matter beyond just the tax advantages.
The Power of Section 179: A Quick Recap
In a nutshell, Section 179 allows businesses to deduct the full purchase price of qualifying equipment and off-the-shelf software purchased or financed during the tax year. Instead of depreciating the asset over several years, you can write it off in the year it was placed into service. This can lead to substantial tax savings, freeing up capital for other critical business needs.
Some key things to remember about Section 179:
- It’s a “use it or lose it” benefit: The deduction must be taken in the year the equipment is put into service.
- There are limits: While generous, there are annual spending limits for the deduction and a total equipment purchase limit. It’s always wise to consult with a tax professional to understand your specific eligibility and maximize your benefits.
- It applies to new and used equipment: So long as the equipment is new to your business, it generally qualifies. Again, you’ll want to consult with a tax professional to ensure eligibility before making your purchase.
Office Equipment and Technology Upgrades
Now, let’s explore some key areas where smart tech investments can truly make a difference, amplified by Section 179.
1. Replace Legacy Printers and Copiers
Old printers and multifunction devices (MFPs) can be costly in more ways than one. Maintenance issues, higher energy consumption, frequent toner replacement, and slow printing can eat into your IT budget and staff productivity.
By investing in new, energy-efficient printers and MFPs before year-end:
- You can deduct the full cost under Section 179 (up to IRS limits).
- Reduce rising maintenance and supply costs. New desktop printers and office copiers are more energy efficient and often have lower per-page printing costs and replacement parts are less expensive.
- Improve workflow efficiency with faster print speeds, mobile printing, and secure print release features.
- Strengthen print security with comprehensive security features to protect sensitive documents and data.
2. Upgrade Interactive Displays and Collaboration Tools
Modern businesses rely on visual and workplace interactive displays for collaboration, presentations, and training. Outdated displays can limit engagement, clarity, and overall productivity.
Upgrading before the end of the year offers multiple advantages:
- Qualify for Section 179 deductions for new hardware purchases.
- Facilitate better collaboration both in-person and remotely with an upgraded visual display.
- Support interactive sessions for brainstorming, meetings, and trainings making your team more efficient.
- Improve professional image and client presentations, leaving a stronger impression.
3. Optimize Workflows with Software and Automation Tools
Investing in workflow optimization tools — including print management software, scanning and digitization solutions, and collaboration platforms — can deliver a big ROI.
Benefits of year-end workflow upgrades include:
- Deducting software costs under Section 179, if qualifying.
- Streamlining document management, reducing wasted paper and storage space.
- Simplify and centralize print management with software tools to better track, manage, and control print users, policies, and devices.
- Improving security and compliance with audit-ready digital records can protect your business from threats and ensure regulatory adherence.
- Enhancing team collaboration for in-person, remote, and hybrid employees with collaboration tools like ViewSonic’s TeamOne software.
- Reducing manual tasks with automation tools will free your team to focus on higher-value work. This could be anything from advanced accounting software to customer relationship management (CRM) systems.
Take Advantage of Section 179 Before Year’s End
While the end of the year brings office holiday celebrations, cheer, and PTO, it is also a critical window for strategic business moves. December is the final month to capitalize on Section 179 deductions before the start of the new year. Making these investments before the calendar turns will:
- Help you maximize your tax savings.
- Position your office for a smooth, productive start to the new year.
- Allows for strategic planning and upgrades without disrupting daily operations.
Whether it’s replacing outdated printers, upgrading interactive displays, or investing in workflow software, now is the perfect time to act. By leveraging Section 179, you can make significant and impactful investments in office technology solutions, reduce your tax liability, and position your business for a more productive and profitable new year.
If your office technology is due for a refresh or upgrade, don’t wait. Consult with your tax advisor and technology providers today to identify the best investments for your business and take full advantage of this powerful tax incentive before it’s too late!
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