Bottom Line Up Front: Section 179 is a handy tax deduction you can use to upgrade your business equipment and software. The deduction limit’s been raised to a whopping $1,050,000 for 2021. But time is running out, so find out what you need to do.

The new year is almost here, so it’s time to buckle down and get ready for 2022. You might have already set your sights on 2022, but did you know that there are benefits your business can tap into to update and upgrade your equipment before 2021 ends? There’s a tax deduction a shop like yours can take advantage of, called Section 179. It’s a great way to spruce up your business, and the good news is that for 2021, the deduction limit’s been raised to $1,050,000.

Let’s take a quick look at how you can use this deduction to benefit your business.

*NOTE: InkSoft isn’t a professional tax service, so we recommend consulting a tax professional to make sure you get the most out of Section 179.

Items You Can Deduct

The list of qualifying items for Section 179 includes a lot of materials that directly benefit print businesses, like: 

  • Equipment for business use
  • Computers
  • Property attached to your building that is not a structural component (like a printing press, large manufacturing tools, and equipment)
  • Office Equipment
  • Software (like InkSoft!)

And those are just a few items on the list.

A Worthwhile Investment

Here’s something to consider– maybe buying an automatic screen printing press or a DTG printer might feel like too much of a risky investment this year. But what about upgrading your software to run your business better in 2022?

You can use that deduction to buy an InkSoft license which is a fraction of that $1,050,000. And even if you are considering office and production equipment upgrades, you’ll still have plenty left over to deduct it.

Investing in InkSoft can help you bring in more profits in 2022 since it:

  • Streamlines your order management system. 
  • Better connects all your shop’s departments, so orders get processed and shipped faster.
  • Stores all your customer order information in one place and allows you to modify order details easily. 
  • Gives you and your customers e-commerce solutions with InkSoft Stores. 
  • Speeds up the quoting and approval process with customers.  

Important Requirements

If you want to take advantage of this deduction, it’s a good idea to read over all the fine print. Here are a couple of crucial requirements/details about the deduction according to the IRS:

  • To use the 2021 deduction, your equipment needs to be purchased and active by 11:59 on Dec. 31, 2021.
  • The equipment needs to be used more than 50% of the time in your business. That means something you buy for personal use and only use occasionally doesn’t count.
  • The asset needs to be purchased, so leased equipment doesn’t qualify.
  • You can’t deduct more than you made. Section 179 doesn’t allow you to deduct more than what your net income is for the year. *This is why it’s a good idea to consult a tax professional to make sure you’re getting the most out of this deduction.

The Clock is Ticking

Chances are your business has modified hours with the upcoming holidays, so you don’t have a lot of time to take advantage of this deduction. Make sure you get in on this benefit as soon as possible so you can head into 2022 firing on all four cylinders.

Want to learn more about why InkSoft is an excellent choice for Section 179 deductions for the year?  Contact an InkSoft client advisor today for your free personalized tour. Fifteen minutes can change your business!

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