Tag: technology buying

  • Maximizing your tax deduction potential with Section 179

    Maximizing your tax deduction potential with Section 179

    It’s September which means we’re almost to the fourth quarter where most businesses look ahead towards end of year activities, it’s not unusual for us to see an increased interest in locking down new equipment and upgrades before year end.

    Each year we begin promoting the benefits of Section 179, you can learn more about it in our updated guide for 2023 or continue reading.

    In a nutshell, Section 179 is a tax savings benefit that allows you to deduct the cost of equipment you use for work from your (in some cases up to 100% of the total cost) from your tax expenses. When used correctly, this means you can purchase upgrades for your business and receive that money right back into your business when you file the following year.

    Section 179 is a permanent part of the tax code here in the United States but that doesn’t mean it’s static. Each year the deduction limits are adjusted for inflation. You can see on the chart below what this year’s limits are.

    You can choose to take the deduction in one lump sum or take a deduction for depreciation each year instead – it’s completely up to you.

    What equipment or technology purchases qualify for Section 179?

    1. New Equipment: This includes computers (as long as they’re used in your business at least 50 of the time), servers, backup devices, phone system hardware and more.
    2. Components: Such as hard drives and solid-state drives, RAM, video cards, monitors and more.
    3. Refurbished Equipment: You don’t have to buy new equipment to qualify for Section 179, in fact if you’re in the market for a new server and have been debating new vs refurbished, we have an article where we weigh in here. Equipment can also be financed or leased and still qualify.
    4. Software: If you’re looking to purchase software upgrades for your business this year – such as upgrading an older copy of Windows to the latest version – these would also qualify.
    6. Professional Services: Even professional services like ours can possibly be deducted under Section 179.

    We find many businesses are looking to make purchases before the year end because that’s when a clearer picture of their financials is available but be warned. For a purchase to qualify in 2023 these purchases must be made before December 31st. Even if the purchase was planned as part of this year’s budget, if it’s purchased January or later it will not count for this year’s taxes.

    If you’re looking for the exact math on a potential purchase and the savings you will net, we can recommend this calculator, it has been updated for 2023. It’s also important to note that the ceiling for your particular business is your net income, you cannot deduct more money than you made that year, however you can carry the deduction forward to the next year.

    We’ve spent some time discussing what does qualify under Section 179, but what about what doesn’t? The following items would not qualify under Section 179:

    1. Intangible Assets: This would include things like patents or copyrights as an example.
    2. Land: You cannot purchase land and claim a deduction for Section 179.
    3. Purchased from family: Unfortunately, you cannot claim purchases that are made through a family member. Even if the product itself would normally qualify, if the item was purchased through a sibling, parent’s or spouses’ separate business it will not qualify.

    Interested in making technology upgrades in your business and utilizing Section 179 in 2023? Valley Techlogic can help, we offer procurement services as well as technology solutions that are covered by this very useful tax code. Learn more today by scheduling a consultation.

    Looking for more to read? We suggest these other articles from our site.

    This article was powered by Valley Techlogic, an IT service provider in Atwater, CA. You can find more information at https://www.valleytechlogic.com/ or on Facebook at https://www.facebook.com/valleytechlogic/ . Follow us on Twitter at https://x.com/valleytechlogic.

  • Need a new work laptop? Here are five features to focus on

    Need a new work laptop? Here are five features to focus on

    Selecting a new work device is a personal choice, there are factors a lot of buyers focus on. Sizing, screen type, track pad feel or material, keyboard type. All of these peripheral factors that go into choosing the perfect laptop to complete your work on.

    We want to dig specifically into what you should consider when it comes to the specs of your work laptop. What you do and how you do it will greatly affect whether a laptop is the right choice for you, from smaller footprint lower cost models that work perfectly for light duty to robust, graphic and memory intense models that can handle high use scenarios such as graphic design or multi-tasking.

    Here are the five things we consider most important when it comes to the use of your laptop for work.

    1. Battery Life. Battery life may not be as important if you intend to dock your computer at a desk and leave it there primarily. If you need your laptop on the go, however battery life is hugely important and what’s available varies widely. One thing to remember is that higher specs usually correlate to less battery life, so if your job is light duty but on the go it may be better to look for a lighter, less powerful laptop.
    2. RAM/Memory. No matter what we recommend at least 16 GBs in your laptop (or the ability to upgrade). This is because Windows itself uses quite a bit of memory, so if you opt for less memory in your work laptop you may find it struggles to keep up. 8 GBs might be okay for very, very light usage but for heavy users 16 or 32 GBs is preferable.
    3. Storage. Again, because Windows does use up some of the storage available for its installation we want to look for more capacity if possible. For light users 500 GBs is fine, but for most users we would recommend at least 1 TB.
    4. Video Card. When you think video cards you might think gaming, but a good video card is also used by your computer for certain processes, especially graphically intense one. If video editing or graphic design is part of your workflow, we suggest looking for a work laptop with a better video card even if it’s a laptop that’s marketing is aimed at gamers. As a bonus these laptops will usually have a better quality screen as well.
    5. CPU. We can’t overlook the CPU quality In the laptop buying process. More CPU power means more capacity to run programs or have a lot of tabs open in your browser.

    Of course, if you’re buying for many users within your organization, it can be difficult to customize your buying to specific users. At Valley Techlogic we’re able to make recommendations for laptops that will meet the needs of your workforce while also keeping budget in mind.

    Through Valley Techlogic’s procurement services we can help you buy new equipment for your office through our vendors with more choices than are usually offered through their brick-and-mortar presence. We have relationships with Dell, Lenovo, HP and more that we can use to your advantage.

    Valley Techlogic also offers installation services if you need help setting up your new equipment and getting it ready for your employees.

    Learn more about our procurement services today by clicking the banner below to get started, or click here to schedule a consultation.

    Looking for more to read? We suggest these other articles from our site.

    This article was powered by Valley Techlogic, an IT service provider in Atwater, CA. You can find more information at https://www.valleytechlogic.com/ or on Facebook at https://www.facebook.com/valleytechlogic/ . Follow us on Twitter at https://x.com/valleytechlogic.