Q4 is the time to start thinking about the end of the year and planning for next year. You likely already know about tax law Section 179 which allows businesses to deduct up to $500,000 in purchases of equipment and software in the year it’s placed into service without having to amortize the purchase.

But knowing you can spend that money and knowing what to spend it on are two different things.

Our expert strategists put their heads together to come up with a list of 12 ways you can leverage a Section 179 deduction to help your small- or medium-sized business.

Improve productivity & efficiency

  1. Add new workstations or replace aging PCs (after 3 years).
  2. Replace aging servers (within 3-5 years).
  3. Give staff double or triple monitors and/or monitor risers.
  4. Upgrade your mobile devices (within 2-3 years).
  5. Improve your network infrastructure – start with a network assessment if you’re not sure what improvements are needed.
  6. Update operating software – especially if you’re using Windows XP or Office 2007 as these are no longer being supported and present serious risks to your business.
  7. Increase remote office options by adding a virtual private network (VPN) or secure cloud options.

The best values on the list

8. Virtualization. As you grow, you need more and more servers. By virtualizing, you can spin up multiple servers on a single server box. You get in-house control of email servers and line-of-business applications. Virtualization also lowers your long-term replacement costs, because you’re replacing one server box instead of several.

9. Wireless mesh network. One of the biggest values on the list, a wireless mesh network delivers, multiple interconnected wireless access points. Since these access points share identical configuration, employees are free to move about the office without disruption to their wireless. Be sure to stick to business-grade access points. Home access points are less secure and will still present connectivity problems.

10. EmailAssurance. Did you know Office 365 doesn’t include backups for your emails and has limited spam filtering? How much vital information is in your email right now? EmailAssurance is our complete email package that offers full email security and continuity across multiple platforms without having to onboard new technology or projects.

Security essentials

11. Unified threat management. Your security can’t depend on an antivirus or an older firewall. Threats constantly evolve, and the technology needed to keep them off your network evolves too. You need to have an updated, properly configured firewall, which includes a full gateway security suite.

12. Internet content filtering. While the cat’s away, the mice will play. Sometimes they play online poker on sites loaded with malware. Other times, they play their favorite TV show and eat up your company’s bandwidth. Internet content filtering acknowledges that the mice are going to play, and allows you to take control of what they’re playing on company networks – and company time.

Your Section 179 deductions can be used strategically to gain a competitive advantage, improve productivity, increase efficiency and reduce or eliminate future costs. If you plan well for it, this is one deduction that can bring your company a lot of value.

Want to take advantage of Section 179 deductions for your business? Chat with one of our experts to find out what’s going to give your business the best value.


Legal disclaimer: This article is not to be construed as legal advice. Be sure to check with your tax professional about any and all tax laws that impact your business.