Here's how to take advantage of section 179 tax break in your prospecting efforts.

Section 179’s tax break for acquisition of new business technology and software creates an opportunity for the imaging channel to share this information with our prospects so that they can create a tax break in a single year for the full cost of these solutions even if they're financing it.?

Here’ s a talk track that you can incorporate into your prospecting about Section I79, at the end of your pitch add:

“Many other (insert type of industry for example accounting firms) want to take advantage of Section 179’s tax break that allows for the entire purchase price of technology equipment and software to be taken off as a deduction in full in 2024.

I would like to bring some examples of how this could benefit (insert name of their company) Would Tuesday the 15th at 9:45 work for me to drop this information off and speak with you briefly?”

Below is information you can take to your prospects or provide for your current customers.?

Here’s How Businesses Benefit from Section?179.

Section 179 is especially appealing because businesses gain the ability to?deduct the full purchase price of equipment or software before paying off their loans.?

The tax deduction can significantly reduce the barriers of entry in acquiring technology equipment for businesses. Taking advantage of Section 179 means that businesses can invest the money they saved through the tax write-off to facilitate growth in other?areas.

What qualifies as a Section 179 deduction?

To qualify for a Section 179 deduction, your asset must be: Tangible.?Physical property such as furniture?equipment, and most computer software?qualify for Section 179.?

What Is Depreciation?

The term depreciation refers to an accounting method used to allocate the cost of a tangible or?physical?asset?over?its useful life. Depreciation represents how much of an asset's value has been used. It allows companies to earn revenue from the assets they own by paying for them over a certain period of time.

Because companies don't have to account for them entirely in the year the assets are purchased,?the immediate cost of ownership is significantly reduced.?

Not accounting for depreciation can greatly affect a company's?profits. Companies can also depreciate long-term assets for both tax and accounting purposes.

Section 179 Explained Further.

Taking the cost of the equipment as an immediate expense deduction allows the business to get an immediate break on their tax burden whereas capitalizing then depreciating the asset allows for smaller deductions to be taken over a longer period. The Section 179 expensing method is offered as an incentive for small business owners to grow their businesses with?the?purchase of new equipment.

Section 179 expense deduction is limited to such items as cars,?office equipment, business machinery, and?computers.?This speedy deduction can provide substantial?tax relief?for business owners who are purchasing startup equipment. The equipment must qualify for the deduction per the specifications within Section 179 of the tax code and the purchase price must be within the dollar amount ranges allowable by the code. The property must be placed in service during the tax year for which the deduction is being claimed. Equipment covered by the Section 179 deduction might also qualify for?bonus depreciation, which further reduces the?

business owner's tax bill.

Example

Imagine that a company has purchased a new piece of machinery used 100% for business purposes at a cost of $50,000 and zero salvage value. The company could take that asset and depreciate over the course of 5 years as $10,000 each year. Section 179 would instead allow the company to?write off?the entire $50,000 in the current year.

Kate Kingston ~ 646.831.5184?~ [email protected]?