Every business needs PCs, servers, printers, network gear, data security hardware or software. Fortunately, Section 179 of the IRS tax code lets small businesses better manage their IT budgets. They can write off the entire cost of computer equipment and off-the-shelf software purchased and put in use before December 31, 2015.
Most people think the Section 179 deduction is some mysterious or complicated tax code. It really isn’t.
Essentially, Section 179 allows small businesses to deduct the full purchase price of qualifying equipment and/or software bought or financed during the current tax year. That means, if you buy or lease a piece of qualifying equipment, you can deduct the full purchase price from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.