It’s not easy to operate a successful small business today. You’re faced with escalating costs, sometimes unreliable employees, and competition from name-brand businesses with far bigger budgets. 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 through the American Taxpayer Relief Act of 2012 could help your business boost its technology while paying less for it.
An important tax break
According to the American Taxpayer Relief Act, businesses can now write off as much as a quite impressive $500,000 worth of new technology and equipment acquisitions in 2013. This can provide businesses with the boost they need to more vigorously update their technology. Businesses, for example, might elect to upgrade their computer operating systems to Windows 8. Or maybe they’ll make the move to Apple computers. Others might spend money on automated bill paying or payroll software. These improvements could make small businesses more efficient, and increase their odds of beating their competitors.
A 2012 boost, too
The tax relief act provides even 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 jumped considerably 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 already made.
An important boost
The higher deduction limit can 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 business owners the chance to do this without having to spend quite as much of their hard-earned dollars to do so.