Section 179 provides a taxpayer with an opportunity to deduct the cost of certain types of ‘property’ on their income taxes as an expense, rather than requiring the property’s cost to be capitalized and depreciated. ‘Property’ is a broad definition that includes more than just physical hardware and equipment. Certain types of software, like InkSoft, are considered property and can be deducted!
Software qualifies for Section 179 deductions if the software meets all of the following criteria:
- The software must be financed or purchased outright by you.
- The software must be used in your business for income-producing activity.
- The software must have a determinable useful life.
- The software must be expected to last more than one year.
- The software must be readily available for purchase by the general public.
- The software must be subject to a non-exclusive license.
- The software must not have been substantially modified.
You should review your tax savings potential and opportunity with a tax professional before year-end to fully take advantage of Section 179 and your tax savings!
Via Section179.org
