It’s a challenge to operate a successful small business today. You’re up against escalating costs, sometimes unreliable employees, and competition from name-brand businesses with far deeper pockets. But at least your small business can take advantage of larger tax breaks for investing in new technology. BizTech Magazine recently covered how new tax breaks created in the American Taxpayer Relief Act of 2012 could help your business boost its technology while paying less for it.
The tax break
As stated by the BizTech Magazine story, the Taxpayer Relief Act gives small businesses the ability to write off up to $500,000 in new technology and equipment purchases in 2013. That’s substantial, and may provide small business owners with the financial ability to replace their computer equipment, modernize their payroll software, purchase new forecasting tools and even boost their social media presence. Quite simply, the tax break can give small business owners their best chance at competing in today’s challenging marketplace.
Help for 2012, too
The tax relief act provides a lot more benefits to small business owners. According to the BizTech story, the new law also retroactively ups the total amount that businesses can deduct for equipment purchases made in 2012. This amount will be jumping significantly from $139,000 to $500,000. This retroactive move allows business owners to write off more of new tech or equipment purchases that they’ve previously made.
What it means to you
The higher deduction limit could help small businesses succeed in what has become an ever more competitive business climate. One of the ways for businesses to give themselves an advantage is by investing in the latest technology and equipment. The taxpayer relief act deduction give small business owners the chance to do this without spending quite as much of their hard-earned dollars to do so.