section 179 tax deduction

Dreading Tax Season? Section 179 Might Change Your Mind

Dreading Tax Season? Section 179 Might Change Your Mind

No one looks forward to tax season – but for small and medium-sized business owners, Section 179 aims to make the process a little less painful. Have you held off on upgrading equipment – for a year, two years, even a decade – because the upfront cost was too steep?

Traditionally, a business owner could write off the cost of equipment a little bit at a time through depreciation. For example, if you spent $30,000 on a machine, you may have written off $10,000 a year for three years. But, what if we told you that you have the ability to make your upgrades right now and deduct the full amount of your purchases this tax season?

It’s true. Section 179 allows you to deduct the full price of any qualifying equipment or software purchased, financed or leased during the year, including:

  • Workstations, laptops, tablets, smartphones
  • Servers and printers, routers, network switches and network security appliances
  • Off-the-shelf software (productive, anti-virus, administrative, etc.)
  • Vehicles designed for commercial use
  • Nonresidential property improvements

All you need to do is use form 4562 to claim your deduction. For 2018, the full deduction can be claimed until you’ve reached the allotted $2.5 million in equipment and software purchases. Past that point, the deduction decreases on a dollar for dollar basis until it disappears at $3.5 million. Even businesses with a net loss may be qualified to deduct a portion of the cost of new equipment and carry forward the loss.

Is it time to upgrade your equipment? Generally, you’ll notice a performance decline in the first one to two years, with major errors occurring in years three and four. Here’s a good replacement timeline:

  • Computers – Every five to seven years
  • Other tech, including printers and switches – Every three to five years
  • Company vehicles – Every six to 10 years

Swapping out dated technology translates to big benefits – less downtime, less time waiting for new equipment, a better customer experience and boosted revenue. Keep pace with your competitors or push past them by taking advantage of Section 179. If you have questions about your eligibility, consult your accountant and visit section179.com for additional information.

You have the opportunity to leverage new equipment right now instead of waiting and potentially slowing down growth and innovation. Ready to boost your business? Contact ustoday to determine which tech upgrades will make the biggest impact on your operations.


you could benefit from a vCIO

5 Signs You Could Benefit from a vCIO

5 Signs You Could Benefit from a vCIO

Business owners have an unending list of tasks on their plate – and technology, especially strategic IT planning, usually gets pushed to the back burner. But, a virtual CIO (also known as a vCIO) can take on your high-level technology responsibilities, giving you systems that perform seamlessly and support your business rather than hindering it.

Here are five signs that you could benefit from virtual CIO services:

  1. You struggle to meet compliance standards.

If your business is subject to PCI, SOX, HIPAA or other regulations, you know how much work it is to consistently meet compliance and stay on top of changes. A virtual CIO evaluates your systems and implements processes to ensure that you’re compliant each and every time – saving you the hassle of noncompliance fines, a damaged reputation and broken customer trust.

  1. Your technology costs are all over the place.

If downtime, break/fix calls and unreliable vendors make your monthly IT bill anything but predictable, enlist the services of a virtual CIO. They recommend the best solutions to boost your uptime and minimize disruptions to your workflow, negotiate with vendors on your behalf and manage projects within your budget. Plus, vCIOs themselves operate at a standard monthly cost that’s a fraction of what you would pay an in-house CIO in salary, benefits and bonuses.

  1. You lack a strategy for the future.

We get it, the future is a long way off – except it isn’t. If you don’t have a strategy for your technology, you’ll waste time and money on solutions that don’t ultimately align with your business goals. Virtual CIOs work with you to develop a roadmap that outlines your plan for growth and recommends solutions that will help you achieve that outcome – giving you the confidence to make better investment decisions.

  1. You’re missing a solid business continuity plan.

Natural disasters, power outages and human error affect every business – the question is, do you know how to recover? A vCIO implements a comprehensive backup and disaster recovery plan so you can protect your data and access it quickly. More than 40 percent of SMBs close their doors permanently after a disaster; instituting a plan now stops you from becoming a statistic.

  1. You aren’t getting actionable insights from your data.

Almost every interaction with your customers can offer insight into what they want and how you can better serve them – but, that only works if you know how to read the data. Virtual CIOs help you sort and analyze your data to make smart decisions that improve your business.

If some or all of these describe you, it’s time to get your technology in order. Contact us today to learn how a vCIO can resolve your challenges.

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think IoT for your industry

Think IoT Doesn’t Affect Your Industry? Think Again

Think IoT Doesn’t Affect Your Industry? Think Again

“The Internet of Things is just a fancy term in the tech industry, right?” Well... yes. But IoT’s broad reach (people used 8.4 billion IoT devices in 2017) means the Internet of Things is already changing the way your industry operates, whether you’re aware of it or not.

IoT is a network of physical devices or sensors that collect data, send it to the cloud to be processed and receive back insights via a user interface. This helps workers in any sector become more productive and make quicker, more informed decisions.

Here are five industries that are being transformed by IoT:

Government

Sensors monitoring everything from infrastructure wear to intersections gather the data that government officials need to optimize neighborhoods, towns – even entire cities. They use aggregated data to optimize traffic flow, improve emergency response efforts and monitor air quality and water systems (in Dubuque, Iowa, residents reduced water usage by 6.6 percent after gaining the ability to view their consumption). Planned future projects include self-driving shuttles that communicate with traffic signals and drones equipped to fight forest fires.

Energy

We all (hopefully) try to turn off the lights when we leave a room – but what if that concept could be applied to an entire building, or thousands of them? Officials in New York rely on sensors and analytics software to monitor usage and predict system failures. Eventually, they plan to connect to 20,000 public buildings by 2020 to regulate the temperature remotely based on factors like occupancy and times of low use. Other cities – such as Copenhagen – are dimming and brightening LED street lights to conserve energy while also protecting residents.

Consumer Goods

Smart sensors and tags are making shipping, inventory management and reordering more intuitive than ever. Business owners and employees can track packages in real time, instantly update inventory logs as products are sold and receive notifications when it’s time to restock an item. In addition to increasing efficiency, companies such as jewelry brand Alex and Ani are using IoT to attract passersby to physical locations, make recommendations and study the movements of shoppers to optimize store layouts.

Agriculture

When you think about the practical applications of IoT, agricultural production might be the last thing that comes to mind. But, smart technology is helping farmers control unpredictable factors such as light, temperature and moisture. By automating irrigation systems and analyzing data to determine things like optimal humidity and pH levels, farmers can expect healthier, more stable crop yields – and easily share that information with other producers.

Healthcare

As the elderly population booms – the U.S. Census Bureau projects the population of people age 65 and older to reach 98.2 million by 2020 – healthcare professionals need advanced techniques to monitor elderly and ill patients, even in their own homes. IoT sensors can tell when patients fall or forget to take medication. Caretakers can also monitor seniors via live video and audio streaming and analyze real-time vital signs.

The Internet of Things is just getting started – the International Data Corporation predicts that worldwide spending on IoT will reach $1 trillion in 2020. Interested in seeing how IoT can make your business more innovative, more efficient and more profitable? Contact ustoday to take your technology to the next level.