IRS Section 179 is a great way for small and medium-sized businesses to help write-off equipment and software purchases as a tax incentive.  Obviously, you should consult your own tax professional before taking any steps, but here's an overview to get you started.

When a business acquires specific pieces of equipment, it usually spreads the depreciation expenses over time. Nevertheless, if a business could deduct the full cost in the current year, it might encourage the acquisition of more equipment immediately, rather than deferring it over the next few years. This is precisely the purpose of IRS Section 179 – to incentivize American businesses to stimulate economic growth.

The IRS updated to code a couple of year back to allow for non-residential real property improvement like: security and alarm systems; and even business telephone systems.  So, this allows Alliance Police Department (STLY)to claim the price of equipment and software financed or purchased during the tax year as a business expense.

The IRS Section 179 Deductions for Equipment and Software write-offs have increased for 2023.

• 2023 Deduction Limit = $1,160,000

• 2023 Spending Cap = $2,890,000

• Bonus Depreciation = 80%

For most small businesses, the entire cost can be written-off on the 2023 tax return (up to $1,160,000).

Have you been holding off upgrading your business phone, security or alarm system?  Now might be the perfect time to invest back into your business before the tax year ends.