The end of the year will be here before you know it in a few short weeks. For business owners, this means that there is not much time to impact your 2021 tax bill.
One of the ways you can reduce your tax burden is through deductions on technology purchases. Section 179 of the U.S. Tax code lays out the purchases that also qualify for a 100% depreciation deduction, meaning you can deduct both the cost of the equipment and 100% of the depreciation in the same tax year.
The business technology you can deduct covers a wide range of categories, so there are quite a few options for improving your business capabilities in a way that makes sense for your company’s needs.
The key categories for purchased technology deductions are:
- Hardware (PCs, networking equipment, etc.)
- Software (“Off the shelf”)
- Security systems
- Communications technology
- Office equipment
If you’ve been wanting to upgrade any of your computers, your network, or another part of your IT infrastructure, now is the perfect chance. You’ll be able to recapture part of the expense as deductions from your business taxes in just a few months.
Following are some of the most popular IT upgrades for businesses to consider.
A slow or spotty wireless signal can slow everyone in your office down and negatively impact productivity. With so much work being done in the cloud, networks have more data traffic, which can cause problems with dropped connections, slow response time in cloud software, and other network issues.
Two of the best upgrades to consider for your network are:
- Wi-Fi 6 Router: Upgrading to a Wi-Fi 6 router will improve network speed and give you a significant boost in security as well. This wireless protocol is also designed for better multi-device handling.
- Mesh Network: A mesh network uses small wireless units that spread your Wi-Fi signal throughout your building, creating a web of connectivity. This improves reliability and reach and eliminates “dead zones.”
New PCs with Windows11
Now that Windows 11 has been released, many companies are looking to upgrade, but not all older PCs will be able to handle the minimum requirements.
Now is a good time to evaluate your Windows 10 computers to see which ones are eligible for the free upgrade and which might be too outdated. For PCs that can’t upgrade, you may want to purchase new PCs with Windows 11 already included by December 31st, so you can get the tax benefit early next year.
Equipment to Improve Your Video Conferencing
Meeting virtually has become the norm for most companies ever since the pandemic. This can be a convenient time saver or can be a headache if you have to struggle with sound problems or poor image quality.
Look at purchases like a high-definition webcam for your conference room along with a soundbar for better sound quality. This type of equipment is fairly inexpensive but can make a big difference in meeting productivity and engagement.
Digital Door Access Systems
Digital door access systems can improve physical security by providing you with a log of who unlocks which door and when. It can also save you money on having to replace keys or having door locks re-keyed if an employee quits suddenly.
This type of system can also be integrated with other smart devices, like security cameras. Another benefit is the ability to lock a forgotten door right from your smartphone.
Equipment for Remote Employees
Employees that work from home still need to have the same types of equipment support as they do at the office if you want them to be as productive as they can.
It’s a good idea to survey any remote staff and see what type of equipment may make their job easier. Some potential ideas to empower your remote team are:
- VoIP desk phone
- Desk chair
- Company PC (for those who may be working from a personal device)
If you’re running outdated software on your PC or server, you may want to consider upgrading to the latest version. Using older software can be risky should that software stop being supported with security updates. Employees may also be hampered by using an outdated version of a particular productivity software without access to new features.
Publicly available software is eligible as well as a technology tax deduction. So, you could benefit not only from improved security and staff productivity but also by reducing your tax burden.
Get Expert Help Implementing End-of-Year IT Upgrades
Carl’s Computer Care can help your Louisiana business choose and implement the most cost-efficient year-end technology upgrades to improve your capabilities.
Contact us today to schedule a consultation! Call 225-315-3498 or reach us online.