The purpose of Section 179 of the IRS Tax Code is to move the American economy and your business in a positive direction. Businesses no longer see technology as a cost. Instead, IT has become critical to business success. Significant increases in IT budgets in 2022 are due to changes in business operations ( conduct business), supporting more remote workers, and increasing business revenue.
Amid growing security concerns, the need to upgrade outdated IT infrastructure is paramount. As we enter 2023, IT projects are becoming more and more of a priority. These factors should determine your end-of-year purchases as you plan to do more with less and maximize efficiency. This includes property such as security cameras and surveillance systems, mobile phones and telephone systems.
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One thing to consider, if you haven’t already, is the longevity of the technology. In previous reports, we have indicated that older Microsoft operating systems, namely Windows Server 2012 and Windows 8, need to be updated. The end of extended support for these products is approaching. These systems should be updated now to avoid security and compliance issues. It’s also a great time to replace off-the-shelf software, such as older versions of Outlook on your server.
Replacing old and problematic desktops and laptops before the end of the year is a good move. Any Windows 10 computers not designated for upgrade to Windows 11 should also be replaced. Deduct 100% of new expenses and depreciation. If it’s “new to you”, you can deduct both new and refurbished hardware.
Many companies are keeping remote office workers after the pandemic. The reasons range from cost and space savings to improved employee morale and productivity. Again, any software that helps improve remote employee communication should be considered now. Consider Microsoft 365 Teams or SharePoint and remote management software to keep your off-premises devices secure and supported.
Best-in-class video conferencing requires video conferencing upgrades, as well as webcam, microphone, and screen upgrades. (See IT Insights on The Owl on October 21, 2022). This investment is also tax deductible.
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Now with cybersecurity updates and protection against vulnerabilities (phishing, ransomware, etc.), and a comprehensive IT assessment. Buying hardware and software now can help address these shortcomings. What does a Business Continuity Plan look like? Redundant systems such as backup and data recovery, firewalls and threat detection, and offsite cloud replication are all part of your IT expenditure and technical time required to implement them. and service.
IT professionals at managed service providers such as PCGiT can provide smart strategies for year-end IT purchases and upgrades that improve security, efficiency, and productivity. Stay on top of your business in 2023. A tax credit awaits.
JoAnn Hodgdon is vice president and co-founder of the Portsmouth Computer Group (PCGiT) with her husband David. For her 25 years, PCGiT has provided clients with comprehensive managed IT services, business continuity, security, cloud computing, and strategic her vCIO services. You can reach her at joann@pcgit.com or her www.pcgit.com.
