Bohemia, NY (PRWEB) November 02, 2013
Lawrence Teicher, founder of CFO Consulting Services and leading Long Island CPA, responds to an article published by Fox Business on October 11th, which discusses the best way to write off technology upgrades when planning for tax season.
According to the Fox Business article titled “How To Expense Your Technology Upgrades To Save Money,” Section 179 of the tax code provides for the expensing of capital assets. Implemented over 30 years ago, Section 179 establishes the rules for writing off technology upgrades. For instance, if a small business purchases a new computer with a useful life in excess of one year,, the company will be able to write off the entire cost immediately.
The article says that many small business owners don't know that this section also applies to software purchases or other technology upgrades. In fact, about 45 percent of small to medium-sized business owners don't even know that Section 179 exists. The article says companies are allowed to “write off up to $500,000 worth of qualifying new or used equipment purchased or financed during the 2013 calendar year.”
Lawrence Teicher, founder of CFO Consulting Services and leading Long Island CPA, says it’s important for business owners to be aware of tax saving opportunities. “Most business owners fail to take advantage of provisions in the tax code designed to reduce their taxes,” he says. “The fact that nearly half of all business owners don’t know that this section of the tax law exists is really unfortunate. Upgrading your company’s software and purchasing new technology equipment can be expensive but can have a major impact on productivity. Section 179 can help small business owners reduce the after tax cost of such expenditures.”
Teicher also says that Section 179 will be amended in the future. “The allowance for technology write-offs will be dropping to $25,000 unless Congress extends the law beyond 2013,” he says. “If a business is planning on updating its technology or making a big capital expenditure, it should do so before the start of next year.”
CFO Consulting Services, LLC provides outsourced, part-time CFO services on an as-needed basis to both small and mid-sized businesses located in the NY metropolitan region. Founded by Long Island CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.