Section 179 Tax Break on Technology Upgrades

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Section 179 Tax Break on Technology Upgrades

For the past 2 years, the Section 179 tax deduction has been offered to help business owners purchase and install the hardware and software they need to be competitive and productive. You have $139,000 in tax write-offs waiting to be used. Have you taken advantage of this tax break? If you haven’t upgraded your computers, software, servers, printers, etc. in the past 3 years or longer you should consider doing so now. In 2012 alone, BITS helped 37 customers take advantage of the Section 179 tax deduction. Hardware & software prices are better now than they have been in 5 years and, coupled with the Section 179 tax break, it’s a win-win for everyone.

Now that things in the business world are starting to get back to normal & businesses are growing again, most business owners, managers, and CFOs need to make some investments in their business.  BITS has helped companies upgrade their networks, become more productive, and turn it all into a tax write-off. You say you don’t know where to start? Well here are some tips.  Want more?  Call your BITS expert today to help you get the most out of your upgrade!

Two Key Tips to a Successful Technology Upgrade

Planning for a network upgrade is kind of like moving your home. First you need to decide what you want to keep and integrate into the new network; second, you have to get rid of what you don’t need; and finally, you add in the new stuff to make it complete.

Step 1 – Analysis
Planning for the right technology upgrade takes more than just purchasing a server. It takes engineering and careful planning to ensure that everything goes smoothly and DOWNTIME IS MINIMIZED. The only way to do this is to conduct a thorough analysis of your environment and then compare that to your wish list.  This will help you decide what technology needs to be incorporated into your environment in order to reach your goal(s). The implementation & training aspects are equally important for the best ROI.

Here are some questions to ask yourself before jumping into an upgrade:

  1. What roll will each piece of equipment play within your network?
  2. What changes need to be made to your cabling or lines?
  3. What Equipment & Software is right for your environment?
  4. Wireless, Wired, or combination environment?
  5. Will you create a Thin Client vs. Fat Client vs. Virtual environment?
  6. Will you outsource your email or keep it in-house?
  7. Will you have remote users? If so, how many?
  8.  Do you have any data that will need to be transferred to the new network?
  9.  Will all your current software run on a new platform?

Step 2 – Break your plan into phases
Once you have your needs and purchases mapped out, it’s time to break your plan into phases. You wouldn’t pack, clean, move, unpack, setup, etc. all in one day when you move your house. Why? Because it’s a big project which needs planning and organizing. The same goes for your technology upgrade project.

Breaking your project into phases makes it easier to manage and identify problems when they occur. Most importantly, Do Not…I repeat….Do Not expect everything to go perfectly! The planning will help your project go as smoothly as possible, but plan also for little obstacles that will have to be overcome.

Phases to consider:

  1. Staging of equipment
  2. Setup of new equipment
  3. Configuration
  4. Testing
  5. Cutover & equipment integration

The BITS Team has been successfully upgrading businesses in 100 different Industries for over a decade. Our team of experts knows what to do, when to do it, and how to make the process mostly pain-free. A key to any upgrade is to maximize the usage & ROI. That is why BITS will be with you all of the way until you are comfortable, and to get the job done right the first time.

About Author


Tina has more than 20 years of experience as a highly effective professional in the technology industry. In 2012, Tina started Boutique IT Solutions and continues to provide affordable & user-friendly technology solutions to local NEO businesses and their owners. Tina understands the needs of small-medium businesses because she lives it every day, and through that knowledge she has been able to help hundreds of businesses improve the bottom line. We hope you enjoy her blog!

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