It’s a challenge to operate a successful small business today. You’re faced with 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 in the American Taxpayer Relief Act of 2012 can help your business improve its technology while paying less for it.
The tax break
According to the American Taxpayer Relief Act, businesses are now able to write off up to a rather impressive $500,000 worth of new technology and equipment expenditures 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 invest in automated bill paying or payroll software. These improvements could make small businesses more efficient, and increase their chances of beating their competitors.
A 2012 boost, too
The tax relief act provides a lot more benefits to small business owners. According to the BizTech story, says that the new law also retroactively ups the total amount that companies can deduct for equipment purchases made in 2012. This amount will be jumping significantly from $139,000 to $500,000. This retroactive move allows business owners to write off more of new tech or equipment purchases that they’ve already made.
What it means
These higher deduction limits should come as good news to you. You know your business needs good technology to succeed. The higher limits may help you and your business obtain this tech without spending as much of your money. And once you’re armed with new tech and equipment? Now you have another tool to help you succeed in today’s competitive business environment.