As the owner of a retail store, you have a lot of assets that help keep your store running. The Section 179 Tax Deduction allows US-based retailers to write off the cost of your assets to reduce your tax bill at the end of the year.
Section 179 covers hardware and software expenses too, meaning you can deduct the cost of your integrated e-commerce software from your end of year tax bill.
What is the section 179 tax deduction?
Retailers that have recently purchased or upgraded to a new point-of-sale system or purchased a new e-commerce platform subscription, for example, would qualify for a section 179 tax deduction.
This tax deduction encourages store owners to invest in their business, thus promoting local economic growth. Under section 179 you can also write off equipment and software for the entire amount of the purchase.
What expenses qualify under section 179?
Any business that makes purchases for their business can claim section 179 tax deductions. Relevant expenses for brick-and-mortar stores would include:
- Point of sale hardware and software
- Integrated e-commerce software
- Computer equipment
- Office or storage equipment
- In-store technology like security cameras etc.
How do I get started?
If you’ve already made a new business in 2022 that meets the criteria for section 179 then you can use Form 4562 to submit a claim.
If you’re still thinking about investing in new equipment or software for your business in 2022, then section 179 can help you reduce costs and maximize profits. As long as you purchase your new software this year, you can write it off at the end of the year.
Section 179 was created to help independent businesses mitigate the costs associated with upgrading hardware and software so they can modernize their businesses.
The deadline to submit your claim is December 31, 2022. Don’t miss out on the chance to upgrade your offline and online sales channels, and have the cost fully covered.
Read more about section 179 on the official site or request a free demo of WebSell to start your integrated e-commerce journey.
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