It’s a challenge to operate a successful small business today. You’re up against escalating costs, sometimes unreliable employees, and competition from name-brand businesses with far bigger budgets. But at least your business can take advantage of larger tax breaks for purchasing new technology. BizTech Magazine recently covered how new tax breaks created in the American Taxpayer Relief Act of 2012 could help your business improve its technology while paying less for it.
The tax break
The tech-spending tax break within the American Taxpayer Relief Act of 2012 is an important one. It allows businesses to write off up to $500,000 worth of technology and equipment expenditures in 2013. That’s a large amount, and it might motivate more business owners to spend money on new computers, energy efficient lighting, payroll software and analyzing tools. And these new tech purchases could help these small business owners grow their bottom lines.
The American Taxpayer Relief Act also retroactively permits businesses to write off a greater amount of new tech and equipment expenditures from 2012. According to BizTech Magazine, small businesses can now deduct up to $500,000 of the new tech and equipment purchases that they made in 2012. It is an increase from the former limit of $139,000, and can provide an additional financial boost to small businesses.
What it means
It’s important for small business owners to take advantage of these tax breaks. They are, after all, important financial incentives meant to encourage companies to invest in the technology they need to flourish. Businesses must evolve if they hope to succeed 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 more affordable.