Can your small business thrive if you are depending on outdated technology? Probably not. You need current technology today to communicate with your clients and customers, examine sales trends and more successfully handle everything from bookkeeping to payroll. Fortunately, the American Taxpayer Relief Act of 2012 includes a hefty tax break for small businesses that put money into new technology. Here’s a brief look from BizTech Magazine at how this tax break works and how it can help your small business stay on top of the technology curve.
An important tax break
According to the American Taxpayer Relief Act, businesses can now write off as much as a rather notable $500,000 of new technology and equipment expenditures in 2013. This may provide small businesses with the boost they need to more vigorously update their technology. Businesses, for instance, might elect to upgrade their computer operating systems to Windows 8. Or perhaps they’ll make the move to Apple computers. Others might invest in automated bill paying or payroll software. These upgrades will make small businesses more efficient, and boost their chances of beating their competitors.
Help for 2012, 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 considerably from $139,000 to $500,000. This retroactive move allows business owners to write off more of new tech or equipment investments that they’ve previously 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 quite as much of your money. And once you’re armed with new tech and equipment? Now you have one more tool to help you survive in today’s competitive business environment.