Tax-Deductible Tech Upgrades to Consider Before the End of the Year

We’re headed into the end of the year, and besides all the holiday festivities, this means preparing for your 2021 taxes. Business Owners have just a few more weeks to make moves that could reduce their tax bill come next year.

The 100% bonus depreciation that was offered through Section 179 of the U.S. tax code is still in place. This means that on most hardware, software, and office equipment purchases, you can deduct the cost of the purchase plus 100% of the depreciation in the same year.

What makes the end of the year a great time to upgrade your business technology solutions? It’s because you can take a credit on your taxes and recoup some of that expense in just a few short months (or weeks if you do your taxes early). 

You can also often find great end-of-the-year deals on various equipment and computers due to manufacturers looking to clear old inventory out of their warehouse.

Some of the key technology categories that fall under the Section 179 business deduction allowances include:

  • Computers & Hardware
  • Software (as long as it’s “off the shelf” and not custom made)
  • Office Equipment
  • Security Systems
  • Communications Equipment

Some benefits of upgrading your technology include increasing your profitability through enhancements that can boost productivity and eliminate costly manual processes. We’ve got a rundown below of some of the most popular technology upgrades to consider.

Digital Door Access Locks

Digital door access locks are much more efficient than the old lock and key method. Using a keypad entry system for your exterior doors and any sensitive rooms (such as those storing equipment or financial records) can improve your security.

You gain the ability to track who enters a door and when. You also never need to have locks rekeyed if someone leaves or loses their key. All you have to do is disable a passcode in the system. 

Digital access locks can also be connected to your security system.

Wi-Fi Upgrade (Mesh, Wi-Fi 6)

If you have a slow or problematic Wi-Fi network, it impacts everything that your users are doing. Most companies have moved most of their processes to the cloud, which puts more load on network bandwidth.

Improving your wireless network can immediately boost productivity and allow your team to work faster. It can also solve issues with frozen video calls.

Two upgrades to do individually or at the same time are:

  • Upgrade to a mesh network: This adds several additional wireless units to your network to eliminate weak zones and expand Wi-Fi reach.
  • Upgrade your router to Wi-Fi 6: Wi-Fi 6 is the latest wireless standard. It’s faster, better at handling multiple devices, and more secure than its predecessor.

Remote Team Equipment

A majority of businesses now have some of their employees working remotely due to the transformation caused by the pandemic. But many of those remote workers haven’t been outfitted with the same tools they had at the office.

Ask your remote working employees what type of office equipment would enhance their work. Some potential ideas include:

  • Work PC (if they don’t already have one at home)
  • VoIP Headset and/or Desk Phone
  • Printer
  • Office Chair

Upgrade On-Premises Software

If you’ve been running an older version of a particular software on your on-premises server, then the end of the year is a great time to upgrade. Software purchases are also deductible, as long as it’s a publicly available product (not custom made).

Using an older software version can hold your team back because they’re not able to take advantage of the newest features of a program. You can also find yourself with a security problem should you hold onto that software too long and end up losing support for security patches and updates.

Audio/Visual Equipment

Today’s meetings default to video calls in many cases. This is one of the big changes we’ve seen globally due to the pandemic. 

If your video calls are poor quality and your sound is difficult to hear, it can leave a bad impression on a potential client. It can also interfere with your internal meeting flow when someone must stop to repeat what they said.

Think about upgrading your audio/visual equipment. This may include getting a better video camera, a soundbar, or a projection system for presentations. An investment in better video meetings is going to pay you back with better client impressions and more effective team meetings.

Need Help Choosing & Implementing Technology Upgrades?

Unbound Digital can help your Johnson City, Tennessee business review your current technology needs and recommend the most cost-efficient solutions that will pay you back in productivity and time savings.

Contact us today to schedule a consultation. Call 423-335-2461 or reach us online.


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