Bottom Line Up Front: Section 179 is a handy tax deduction you can use to upgrade your business’s software and equipment. 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 January. Your shop might already have a plan in place, but did you know that there are benefits your business can tap into to update and upgrade your equipment before the year ends?

There’s a tax deduction you can take advantage of called Section 179. It’s a great way to spruce up your business, and the good news is that for 2023, the maximum deduction limit is $1.16 million on qualifying items.

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

*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 for Section 179

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 or other large manufacturing tools.
  • Office Equipment
  • Off-the-shelf software, AKA a product not custom-made for your business.

What kind of equipment and property your shop chooses to write off will vary greatly depending on your size, needs, and what you’re interested in investing in for next year.

But, if you’re interested in adding new software to your lineup, that last bulleted item means you can invest in platforms like InkSoft, GraphicsFlow, or Printavo (or all three!) and save money with Section 179.

A Worthwhile Investment

Maybe buying an automatic screen printing press or a DTG printer might feel like too much of a risky investment this year. And maybe expanding your shop’s warehouse space just isn’t feasible right now. But what about upgrading your software with tools to better run your business for the upcoming year, and years to come?

You can use that deduction to buy an InkSoft license, which is a fraction of the overall deduction limit. And even if you are considering office and production equipment upgrades, you’ll still have plenty left over.

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

  • Lets you create professional-looking storefronts in minutes. Use these for customer stores and your own website.
  • 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 that are mobile-optimized and offer hassle-free experiences modern shoppers want.  
  • Speeds up the quoting and approval process with customers.  

Better Together

Looking ahead to next year, you might also be looking to improve your shop in other areas like production workflow and creating customer artwork. With the Inktavo suite of brands, you can deduct software like Printavo and GraphicsFlow along with InkSoft so you’ve got the right tools to cover all these bases.

Printavo helps you:

  • Stay organized with practical tools to keep your customer jobs organized and prioritized
  • Maintain better production with present task lists for your team
  • Scale with a system that’s built to grow with your shop

GraphicsFlow helps you:

  • Reduce art creation time with a massive library of professional, editable designs
  • Simplify art approvals with an online portal
  • Process design requests from customers with a public-facing art catalog

If you want a better idea of how all three platforms can work together at your shop, check out this video where we show you them in action:

Important Requirements for Section 179

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:

  • 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.

Here are a couple of great resources with some deeper dives on what you’ll need to properly take advantage of Section 179:

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 next year 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 a free demo.

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