Tax Code Alert
As April 15th looms, taxes weigh heavy on your mind. But there’s a substantial tax savings you may qualify for if your business purchased new security or surveillance equipment this year, 2019, or last year (2018).
H.R.I.’s Section 179 allows small and mid-sized business owners to take a deduction equal to the full purchase price of a qualifying piece of equipment, including Security Equipment.
Both hardware and software qualify. The property must be purchased or leased and put into service in the same year the deduction is claimed.
The Definition of a Qualifying Security System
Security systems are defined as tangible items used to protect building(s), its occupants, and the contents within. In the list below, you will find equipment qualifying for substantial tax savings provided by DIGIOP highlighted.
A security system could include:
- Alarm Systems
- Associated Laptops
- Entry and Access Systems
- Monitors (including public view monitors)
- Motion Detectors
- Necessary Wiring and Conduit
- Networks Video Recorders (NVRs)
- Security Cameras
- Security Lighting
- Software Solutions
- Window and Door Locks
Note: Certain security products may qualify for even more savings through depreciation.
Section 179 was part of a broader incentive to produce long-term economic growth by encouraging businesses to make capital investments on products like security systems. The new tax law enables cash-strapped business owners to obtain a lucrative tax break for making crucial purchases in a single year that strengthen business efficiency.
Signed into law in January of 2018, qualifying businesses can deduct up to a total of $1 million in qualifying purchases. Benefiting small to mid-sized businesses, this deduction could reduce the overall cost of a new security system by 25 to 35 percent.
Because DIGIOP develops and owns the software and services we provide, customers can expect tailored technology without the steep price tag. Pair your purchase of hardware and software with the new tax code to recover costs more quickly and continue expanding capital assets.
Realize Substantial Tax Savings
Tax codes change frequently so it is critical to take advantage of these substantial tax savings as soon as possible. We strongly encourage our current and potential customers consult their tax professionals regarding how this exciting change to H.R.I.’s Section 179 could impact them.
While we are not tax experts, we’re happy to share this money saving news.
Download this Tax Alert: Substantial Tax Savings to share with your tax accountant. If you purchased surveillance hardware or software in 2018, it’s possible you can use this tax break on your 2018 business taxes. If you plan to make a purchase in 2019, you can expect to reduce the overall cost by 25 to 35 percent.