Taking Advantage of Tax Deductions When Acquiring New Technology - IRC Section 179
Technology Solutions Explains the Importance of Taking Advantage of IRC Section 179 to Small to Mid-Sized Businesses
Many Companies Are Not Aware of the Tax Law that Can Impact Their Bottom Line
LIVONIA, MI — November 26, 2008 — Technology Solutions, LLC, an industry leader in business communications, announced today that the company is educating the region’s businesses on how to take advantage of significant tax deductions when acquiring new technology under Internal Revenue Code (IRC) Section 179. Technology Solutions, LLC is placing special emphasis on Section 179 because the deductions may change under the new administration in 2009.
“Section 179 of the Jobs and Growth Tax Relief Reconciliation Act was specifically designed to give businesses the ability to increase their spending on new equipment and generate growth in order to stimulate the economy,” said Steve Futrell, President of Technology Solutions, LLC. “Unfortunately, many companies are not aware of these substantial deductions and how it applies to their business. We believe it is our job as our customers’ strategic business partner to educate them on Section 179 and give them the information so they can determine whether to take advantage of it in 2008.”
Back on February 13th, President Bush raised the deduction limit under Internal Revenue Code (IRC) Section 179. Now, business taxpayers may generally elect to take an outright deduction of up to $250,000 of the cost of equipment placed in service during a tax year. If the aggregate cost of qualifying equipment placed in service during the tax year is greater than $800,000, then the deduction is reduced by $1 for each dollar by which the aggregate cost exceeds $800,000. For qualifying assets, the cost of which has not been deducted under Section 179, the remaining cost of the equipment is then depreciable in accordance with the ordinary tax depreciation rules.
Since February, businesses have been experiencing a tremendous push with these new changes. Those companies that are aware of the deductions are scrambling to ensure they are taking the appropriate steps, because it means hard dollars going directly to their bottom line. Surprisingly, many companies have either never heard of the law or don’t know how to take advantage of it.
“During these uncertain economic times, companies must continue to change the way they conduct business and invest in technology or they will not be around much longer,” added Mr. Futrell. “These deductions give businesses of all sizes the ability to do just that! Many organizations haven’t made a change to their voice and data technology in quite some time and the latest advancements have an amazing impact on profitability and productivity. Now, is the time for every organization to take a hard look at implementing new technology that will help them weather the ups and downs that our economy is likely to experience over the coming months.”
ABOUT TECHNOLOGY SOLUTIONS, LLC
Technology Solutions, L.L.C. is a leading provider of voice and data networking equipment and services for businesses within Michigan and across America.
Technology Solutions offers state-of-the-art technology to help its customers increase profitability, reduce communications costs, and give them a competitive advantage in their marketplace.
The company has quickly expanded to provide complete converged solutions incorporating voice systems, data systems, and structured cabling needs, saving customers significant time and cost, and enabling them to leverage their IT investment for future growth. From a consultative approach, Technology Solutions designs, implements, and monitors end-to-end solutions.
With over 70 years of experience, the professionals at Technology Solutions are committed to the philosophy of providing best in class technology, with personal and customized service and support.
For more information on Technology Solutions, call (734) 542-6929 or visit www.ts-llc.com.
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Please feel free to contact Wright Penning & Beamer with questions about your company’s technology investments at 248.477.6300