Save Thousands in Taxes by Upgrading Your Printers Now (Tax Section 179)

Can you use Tax Section 179 to save on office equipment? Yes! Section 179 of the IRC is a tax deduction that makes it easier to upgrade your office equipment—like printers and copiers—while keeping more money in your pocket. But time is running out. With the year-end deadline approaching, acting now is a smart move for your business. 

Section 179 of the IRC is a provision in the U.S. tax code designed to help small and mid-sized businesses invest in themselves. Unlike traditional depreciation, which requires you to deduct the cost of equipment over a period of several years, Section 179 allows you to write off the entire purchase price of qualifying equipment in the year it’s purchased and placed into service. This immediate deduction can provide a significant tax benefit, making it easier for businesses to manage cash flow and reinvest in growth. 

For 2024, the maximum deduction limit under Section 179 is $1,220,000, with a phase-out threshold of $3,050,000. This means your company can deduct up to $1,220,000 in equipment costs, but the deduction decreases dollar-for-dollar once total equipment purchases exceed $3,050,000. After reaching $4,270,000 in purchases, the deduction phases out completely.  

These limits make Section 179 particularly valuable for small and medium-sized businesses, which are less likely to exceed the spending cap. 

Eligible equipment under Section 179 includes tangible property such as machinery, computers, office furniture, and, most importantly, office equipment like printers and copiers. Both new and used equipment qualify, provided it’s new to you and placed into service during the tax year. Additionally, software that is “off the shelf” and widely available to the public can also qualify. 

It’s crucial to note that to claim the deduction, the equipment must be primarily used for business purposes—at least 50% of the time. For example, a multifunction printer used at an office qualifies, but a personal printer occasionally used for business likely would not. 

Here’s why upgrading your office equipment now makes sense: 

• Save Money: Deduct the full purchase price upfront, significantly reducing your taxable income and lowering the total taxes owed for the year. 

• Boost Productivity: Modern printers and copiers are faster, more reliable, and come equipped with advanced features like wireless printing and enhanced security, saving time and effort. 

• Improve Cash Flow: With the tax savings from Section 179, you can reinvest money into other critical areas of your business, such as marketing or hiring. 

• Flexibility with Financing: Section 179 applies to both purchases and qualifying leases, so you don’t need to pay the full cost upfront to take advantage of the tax benefits. 

Consider this scenario: Your business purchases a $20,000 copier this year. If your tax bracket is 30%, Tax Section 179 deduction can save you $6,000 in taxes, effectively lowering the copier's cost to $14,000. This immediate cost reduction makes it easier to justify the investment in new equipment. 

End of Year: The Perfect Time to Review Budgets 

As the year draws to a close, it’s a great time to evaluate your budget and identify opportunities to improve your business operations. Unspent budget allocations can often go unnoticed, and those funds are better invested in equipment that enhances productivity than left unused. 

Year-end is also when businesses take stock of inefficiencies. Are outdated printers slowing your workflow? Are recurring repair costs adding up? Addressing these issues now not only positions your business for a stronger start to the new year but also allows you to take advantage of Section 179 before the deadline. 

End-of-Year Deals from Printer Distributors 

Printer distributors often offer attractive year-end deals to clear inventory and meet sales targets. These promotions may include discounts on high-performance models, extended warranties, or bundled service agreements. Taking advantage of these offers can help you stretch your budget further. 

Pair these deals with Section 179, and your business can maximize its savings. For example, a discounted $15,000 copier paired with Section 179 could cost you as little as $10,500 after tax savings—an unbeatable value. Contact your supplier now to learn what deals are available. 

Have You Been Procrastinating on Equipment Upgrades? 

Let’s face it: Upgrading equipment isn’t always at the top of the priority list. But waiting too long can hurt your business in several ways: 

• Lost Productivity: Outdated equipment is prone to breakdowns and inefficiencies, costing you valuable time and money. 

• Missed Deadlines: When equipment fails, projects can be delayed, impacting client relationships and revenue. 

• Security Risks: Older printers and copiers lack modern security features, putting sensitive business data at risk. 

Now is the time to stop procrastinating. The combination of Section 179 savings and end-of-year promotions makes upgrading both affordable and urgent. 

How New Equipment Can Boost Employee Morale 

Investing in new equipment isn’t just about improving productivity—it’s also about showing your team that you value their time and effort. 

Imagine the frustration of employees trying to meet tight deadlines while dealing with slow or malfunctioning printers. Upgrading to newer, more reliable models reduces these headaches and creates a smoother workflow. When employees see that the tools they need are prioritized, it fosters a sense of appreciation and morale improves. 

Modern printers also introduce features that make tasks easier, such as touchscreens, mobile printing, and faster processing speeds. These small but impactful changes can transform the work environment, making it more efficient and enjoyable for everyone. 

To qualify for the Section 179 deduction in 2024: 

1. Choose Qualifying Equipment: Ensure the printer or copier meets IRS guidelines. 
2. Buy or Lease Now: Equipment must be purchased or leased and placed into service by December 31, 2024. 
3. Claim Your Deduction: Work with your tax professional to file IRS Form 4562 with your return. 

Leasing Options for Extra Flexibility 

Leasing is a great option if upfront costs are a concern. Tax Section 179 applies to qualifying leases, such as "$1 buyout" leases, enabling you to claim the deduction even without full payment. This flexibility helps businesses with tighter budgets take advantage of the tax savings. 

Your Next Steps 

The clock is ticking, and the benefits are clear. By upgrading your office printers and copiers now, you can position your business for success in the new year while saving significantly on taxes. 

Don’t miss out—your savings, productivity boost, and employee satisfaction are just a purchase away.