Windows 10 is coming to an end October 2025. This means that good ol’ Microsoft will stop releasing updates and patches for the Win 10 Operating System. Many are still running Windows 10 on their desktops, which means that these desktops will need to be evaluated to determine if they can handle the Windows 11 upgrade or if they will need to be replaced.
The good news is that if you purchase a new computer before the end of this year (2024), you can deduct the cost from your 2024 taxes under Section 179!
What is Section 179?
Section 179 allows businesses to deduct major purchases from their taxable income in the year the items are purchased, rather than depreciating the cost over time. This means that if you invest in new equipment and start using it right away, you may be able to deduct the full expense when filing your taxes the following year.
For instance, if you purchase a new computer for your business and begin using it immediately, the entire cost could be deducted from your taxable income, even though the computer will provide value for years to come.
How Section 179 Works
Section 179 covers various business equipment, including computers, office furniture, and off-the-shelf software. This deduction primarily applies to assets that retain value over time and would otherwise be written off gradually.
2024 Section 179 Deduction Limits
For 2024 (taxes filed in 2025), the maximum deduction under Section 179 is set at $1,220,000. While businesses can combine multiple expenses to reach this limit, there is a cap on how much eligible equipment can be purchased for deduction. We are not CPA’s, so please check with your accountant to make sure what you purchase qualifies for Section 179.
Conclusion
Understanding Section 179 and its benefits can significantly impact your business's tax strategy. If you're considering new equipment purchases, including computers for the Windows 11 upgrade (or for any other reason), now is the time to act to maximize your deductions for 2024! If you are one who needs new computers or needs assistance to update your current computers, Computer Services Unlimited is here to help!
Please schedule an appointment with Michelle or Mike through this calendar link below, so we can get you taken care of before the end of the year.