How Technology Tax Deductions Benefit Your Business

by Terry Hedden | Oct 31, 2022 | Blog

The 2022 tax season is almost here. Many businesses get nervous during this time, often wondering if they are taking advantage of tax deductions that can reduce their overall expenses. Luckily, technology tax deductions can help companies save big, including Section 179.

With the Section 179 tax deduction, businesses can deduct the full purchase price of qualifying equipment or software purchased or leased during the tax year. The only restrictions? Businesses must have purchased or leased the equipment between January 1st and December 31st of the tax year and have used the items more than 50% of the time for business purposes.

Let’s delve into the full benefits provided by Section 179.

1. Save Big Immediately

It’s a common theme — businesses purchase technological devices and wait for them to quit working before moving on to a new purchase. Doing so provides a plethora of issues, including slowed operations, decreased productivity and high costs to troubleshoot problems.

With the Section 179 tax code of technology tax deductions, businesses can instead invest in new technology at any time and write off the entire cost while filling out their taxes. There’s no need to wait for holiday sales at the end of the year to make an investment.

The following products qualify:

• Purchased, financed or leased equipment
• Workstations, laptops, tablets or smartphones
• Servers, printers, routers and network security appliances
• Off-the-shelf software

2. Remain Competitive

Technology is quick to evolve in today’s age. New hardware and software are released constantly, with cutting-edge features meant to help automate administrative processes and streamline operations.

By continuing to use outdated technology, you risk falling behind your competitors. They’ll be able to work more efficiently, productively and faster. On a broader scale, you risk losing customers to competitors, affecting your bottom line. You must keep up with technology to remain successful in a digital-first world.

3. Make Saving Easy

Another aspect of the tax season that stresses out businesses is how complicated they fear it will be. Fortunately, that’s not the case with Section 179. To take advantage of technology tax deductions like Section 179, all businesses have to do is fill out a form — in this case, Form 4562.

The only limit businesses must know about is the deduction amount which sits at $1,080,000 for the 2022 tax year. Moreover, the total amount of equipment you can purchase to qualify for this deduction Is $2,700,000. After this, the amount phases out dollar by dollar, or the deductible amount begins to decrease.

Stay Modern with Your Tech

Writing off technology purchases has never been easier for businesses. With technology tax deductions like Section 179, companies can improve their technology while enjoying better spending at any time of the year.

If you’d like to learn more about what technology best fits your company’s unique needs, consult our IT experts.

To learn more about other IT resources and strategies, check out additional blogs in our resources section.

The information provided in this blog is for educational purposes only. Consult your tax professional for information on how Section 179 may relate to your business.

Defend Your Data with Cybersecurity Awareness and Training

by Terry Hedden | Oct 4, 2022 | Blog

Were you aware that most data breaches start with an email—specifically a phishing email? Just in 2022 alone, 62% of businesses faced a data breach of some kind. With cybercrimes increasing in frequency and criminals growing increasingly sophisticated with their techniques, training your team is no longer an option—it’s a necessity. Luckily, October is Cybersecurity Awareness Month, and it’s the ideal time for businesses to strengthen their cybersecurity awareness and training for their staff.

To improve your cybersecurity, we’ve put together some helpful tips on how you and your staff can better prepare yourselves for the unexpected.

Cybersecurity Awareness: What You Need to Know

Cybercrimes are on the rise, and these attacks can threaten confidential information and lure unsuspecting employees to click suspicious links. Human error is the easiest way for cyberthreats to occur. By adding that extra layer of protection—cybersecurity training prepares your staff to make smarter decisions when it comes to malicious threats lurking in the shadows.

95% of breaches are caused by human error. That’s an outstanding number that could have been prevented if your employees were properly trained to identify malicious threats. Knowledge is key when it comes to cybersecurity, and teaching your team what to look for can save your business time and money. Cybercriminals are going to rely heavily on your team’s lack of awareness because it’s easier to trick someone into giving their information if they aren’t aware of the malicious intent.

Training Tips

How can you ensure that your employees and your business are safe online?

• Teach your employees how to identify a scam: Teaching your employees to spot scams will help them to determine what’s real and what’s fake. You can teach them to exercise caution when reading emails.
• Teach and enforce password best practices: Strong passwords are critical to online security. A good password is at least 12 characters long and has a mix of upper and lowercase letters, numbers and symbols. 50% of people use the same password for work and personal accounts. Make it long, unique and complex to avoid issues.
• Teach your employees about protocols if a breach has occurred: Having a disaster recovery plan and putting it to use is essential in helping your staff understand what to expect in case a breach has occurred.

We Have You Covered

Neither you nor your employees want any harm to come to your business. By giving them the tools they need to fight off cyberthreats you can outmaneuver the hackers by using your greatest asset as a frontline defense—your team.

With NetAssurity, employees are trained to understand how to combat a cyberattack. They can recognize danger and learn how to better protect themselves with our educational programs. Don’t wait to give us a call. Bring cybersecurity awareness and training to your staff now. Let us help you prepare for the unexpected. Contact us today.

If you want to learn more about cybersecurity awareness and training, check out additional blogs in our resources section.