Now is the best time to buy your business a gift – more visibility, better processes and greater efficiency. Why? Because you will be able to take the business software you buy now as a deduction. And who doesn’t want to squeeze one more tax deduction in before December 31st?
Today many businesses are discovering that purchasing software is more affordable than ever. Thanks to the “bonus” depreciation write-offs created by the Tax Relief, the cost of certain capital investments can now be substantially reduced with the combined use of incentives and 100 percent bonus depreciation. However, this bonus depreciation write-off is available only for purchases made in 2011.
Businesses investing in software can fully deduct the cost during the current tax year, reducing taxable income and taxes paid. With the help of a tax professional, businesses can reduce their out-of-pocket software expenditures, thanks to the Section 179 of the IRS code, which has to do with software and equipment depreciation – as long as all of the software and equipment is purchased by December 31. This is for any business of any size.