One of the things that business owners are anticipating this time of year is how much they may have to pay in taxes in the spring.
While April is still several months away, there are only a little more than eight weeks left to do things that can reduce your tax burden for 2021.
One of the ways you can lower the amount of taxes you have to pay is by investing in your technology before the end of the year. Technology purchases, including hardware and software, are deductible through Section 179 of the U.S. tax code.
Businesses and those that are self-employed as consultants or freelancers can deduct up to $1,050,000 on qualifying equipment (new or used). There is also a temporary 100% first-year bonus depreciation that can be used on purchases. This means that instead of having to take a deduction for equipment depreciation over several years, it can be done upfront. This can make a big difference in your ability to upgrade PCs, servers, and other hardware now, rather than waiting.
There are several types of technology that can be deducted, including:
- Hardware (computers, servers, routers, low-voltage cabling, etc.)
- Software (as long as it is commercially available and not custom-built just for you)
- Security and alarm systems (IP security cameras, etc.)
- Office equipment (printers, copiers, etc.)
- Communications equipment
IT Upgrades to Consider Before the End of the Year
Security systems have become much easier to use and less expensive over the years. IP security systems can be set up easily and provide you with an app where you can keep an eye on your entire property from your smartphone.
Doorbell cameras can also double as intercom systems to provide both security and convenience.
Door Access Systems
If you’re still using keys for your door locks, there is a more efficient way to handle physical security that doesn’t involve having to get locks changed every time an employee is terminated or quits.
Computerized door access systems help you better track access to your building or specific sensitive areas. You can easily change entry codes as needed and have reporting on who is accessing your building and when.
Conference Room AV Upgrades
Video conferencing has become the new default method of conducting meetings due to the pandemic. But if you don’t have decent AV equipment, the sound, and visual quality can distract from the point of your video call.
Think about upgrading the sound and visual equipment in your conference room. If you don’t have a conference room, then you could create what’s known as a “huddle room.” This is a small area or corner of a room that is specifically set up for a group video chat. It offers a professional place to hold virtual meetings with just a little space to work with.
VoIP Phone System
Due to the pandemic, we now have more people working remotely than ever before, and it looks like this is going to be a permanent shift in how many businesses in Charlotte and the rest of the country operate.
Landline phone systems are now outdated, and VoIP is becoming the norm. When you subscribe to a VoIP service, you can deduct equipment used with it, such as cloud-enabled desk phones and headsets.
New Windows 11 PCs
Windows 11 was just released and is now rolling out to compatible Windows 10 PCs. Not all of them will be able to be upgraded because they don’t meet the minimum requirements.
If you have any business computers that are 3-4 years old and are getting slower and more problematic, then now is a good time to replace them and purchase PCs that already have Windows 11 installed.
You may also find that some PCs you already have, won’t meet the minimum requirements. If you upgrade them now rather than waiting until next year, you can enjoy the tax break on your upcoming 2021 taxes.
Mesh Wireless System Using Wi-Fi 6
Remember that huge Facebook, Instagram, and WhatsApp outage that happened at the beginning of October? It was caused by a network issue that basically cut Facebook’s systems off from the internet.
Staying connected online is vital to business operations these days, and you may want to invest in a better Wi-Fi system.
Mesh wireless systems provide better coverage and multi-device handling than single router systems. They also ensure you don’t have a single point of failure when it comes to your router because it includes several units.
A requirement for any new Wi-Fi system should be that it uses the newest standard, Wi-Fi 6. This gives you improvements in speed, reliability, and security over the older standard.
Get Expert Help Planning Your Technology Upgrades!
Rocky Knoll Technologies can help your Charlotte area business make the best decisions when it comes to your technology upgrades that provide the most value for your investment.
Schedule a consultation by calling 704.594.7292 or reach us online.