Your small business needs new technology to stay competitive. Unfortunately, paying for new technology is far from cheap. Fortunately, small business owners are due a substantial tax break this year that might make it easier for you to update your company’s technology tools. The American Taxpayer Relief Act of 2012 includes with it a sizable tax break for businesses that purchase new technology. Here’s a primer from BizTech Magazine on how the tax break works and just how much cash you could save.
An important tax break
According to the American Taxpayer Relief Act, businesses are now able to write off up to a quite notable $500,000 of new technology and equipment acquisitions in 2013. This can provide small businesses with the boost they need to more aggressively update their technology. Businesses, for example, might elect to upgrade their computer operating systems to Windows 8. Or maybe they’ll make the move to Apple computers. Others might spend money on automated bill paying or payroll software. These upgrades could make small businesses more efficient, and increase their odds of beating their competitors.
A 2012 boost, too
The benefits of the taxpayer relief act don’t end with just 2013, either. As BizTech Magazine reports, the act also retroactively increases the amount that small businesses can deduct for equipment and technology purchases made in 2012. The boost is a large one, too, from $139,000 to $500,000. This can again help the bottom line of businesses, enabling them to write off more of the equipment and technology purchases that they have already completed.
An important boost
It’s essential for companies to take advantage of these tax breaks. They are, after all, important financial incentives intended to encourage business owners to invest in the technology they need to thrive. Businesses must evolve if they hope to flourish today. One of the best ways to do this is to invest in new technology and equipment, and the taxpayer relief act makes carrying this out less costly.