It’s challenging to run a successful small business today. You’re up against escalating costs, sometimes unreliable employees, and competition from name-brand businesses with far deeper pockets. 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 through the American Taxpayer Relief Act of 2012 could help your business strengthen its technology while paying less for it.
A big tax break
According to the American Taxpayer Relief Act, businesses are now able to write off up to a rather notable $500,000 worth of new technology and equipment purchases in 2013. This could 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 can make small businesses more efficient, and boost their odds of beating their competitors.
Help for 2012, too
The benefits of the taxpayer relief act don’t end with just 2013, either. As BizTech Magazine reports, the act also retroactively raises the amount that small businesses can deduct for equipment and technology purchases they made in 2012. The increase is a large one, too, from $139,000 to $500,000. This can again help the bottom line of businesses, allowing them to write off more of the equipment and technology investments that they’ve already completed.
What it means
The higher deduction limit will help small businesses succeed in what has grown into an ever more competitive business environment. One of the ways for businesses to give themselves an edge is by investing in the latest technology and equipment. The taxpayer relief act deduction give business owners the chance to do this without having to spend as much of their hard-earned dollars to do so.
Posted on: 04.23.13