Section 179: The One Tax Deduction Retailers Should Consider
As a successful retail business owner, have you considered or even heard of the Section 179 Deduction? This IRS tax deduction, Section 179 as it’s commonly called, was signed into law as part of The Tax Cuts and Jobs Act. It’s designed with small businesses in mind. Including retail businesses.
This IRS business tax deduction helps you add new or upgrade your point of sale hardware, software, and other qualifying business property while allowing you to keep more of your tax dollars. Read on to learn how Section 179 works and how it can save you money. Not only this year but for years to come.
Section 179 Explained (e.g., for Retail Business)
Are you still thinking about whether or not to purchase or lease new point of sale software or hardware in this current tax year? The Section 179 deduction could indeed sway your decision. This business incentive to purchase could have a real impact on your retail business equipment costs (the deduction is at a robust $1,000,000.)
Retail business owners that take advantage of Section 179 could purchase qualifying property and take a depreciation deduction in one year or immediately, rather than spreading it out year over year. It makes more sense to take the full depreciation deduction now, rather than year over year.
How Section 179 Can My Retail Business Save Money
Quite simply, retail businesses that purchase and put into service $1 million or less in qualifying equipment by December 31st can deduct up to $1 million of that expense. Wait, there’s more. Bonus depreciation might also be available to those who purchase over $2.5 million in qualifying equipment. By deducting the full cost of your equipment purchases, you lower the amount you pay for hardware and software substantially and reduces your tax bill while keeping money in your business to help it grow.
What Retail Software & Hardware Qualifies
All businesses need equipment on an ongoing basis. Be it computers, software, office furniture, vehicles, or other tangible goods. Retail businesses are no different. They’re required to always deliver speed and efficiency at the point of sale or back-office. That’s why almost all types of “business equipment” that your business buys or finances will qualify for the Section 179 deduction:
Our retail point of sale software and hardware covered under Section 179 includes:
- NCR Counterpoint Point of Sale Software
- NCR RealPOS® Terminals
- Touch Dynamic All-in-One Terminals
- Point of Sale Peripherals
- Back Office Servers
- Computers & Printers
- …and more
What Payment Options Are Available
Section 179 offers retail business owners an opportunity to maximize their purchasing power by allowing the qualifying equipment to be purchased, financed or leased. This added incentive gives you additional purchasing flexibility. With a more manageable set of options, you benefit by using your equipment faster with a more manageable set of options in cash outlay for the year.
For example, we offer a number of flexible retail equipment leasing options to accommodate both short-term and long term financing.
Whether you choose to purchase, finance or lease qualifying property, the Section 179 tax deduction can have a significant impact on your overall operating costs, cash flow, and bottom-line.
Why not reach out to our account managers and explore options in purchasing qualifying Point of Sale Hardware and Software under the Section 179 tax deduction.