6 Smart Technology Upgrades to Make by Dec. 31st for Tax Deductions

The holidays are nearly upon us and before you know it, tax time will be rolling around again. There are only a few short weeks left to make any IT investments in your business infrastructure that you can use for tax deductions for 2021.

There are several technology-related items laid out by the IRS, and many of them also qualify for the current 100% depreciation bonus deduction.

Per section 179, deduction maximums have been increased by $10,000 for 2021. The maximum section 179 expense deduction is $1,050,000. Technology categories that qualify for the deduction include:

  • Off-the-shelf software
  • Hardware (PCs, networking equipment, etc.)
  • Office equipment
  • Security systems
  • Communications equipment

The 100% bonus depreciation means that for qualifying property, you can deduct the cost of the item, plus take 100% of the depreciation deduction in the same tax year.

The main qualifications for the depreciation deduction are:

  • It must be property you own.
  • It must be used in your business or income-producing activity.
  • It must have a determinable usable life.
  • It must be expected to last more than 1 year.

There are many different types of technology upgrades to consider, especially if you’ve gone through the same remote and hybrid office transformation that so many businesses have since the pandemic.

If you’re unsure about what types of IT upgrades can enhance your business, here are several that are popular right now.

1. Equipment to Enable Your Remote Team

Eighty percent of full-time workers say they expect to continue working from home at least three or more days per week. Remote employees can actually be more productive than when in the office, but only if they have the same types of tools to enable them.

If you have remote employees, take a look at what’s been provided to them by your company and what they are making do with on their own. Ask if there is any equipment that could make their work easier.

This may include things like an office-issued computer, printer, or other similar equipment.

2. Digital Door Access System

Being able to keep tabs on who is accessing which door in your building increases your physical security. Using a key and lock system is outdated and makes tracking access to sensitive assets difficult.

Digital door access systems provide you with a way to lock or unlock doors remotely from a smartphone. You also have a log of everyone that accesses each keypad-enabled door.

3. Wi-Fi Improvements

A slow Wi-Fi can drag down everyone in the office. With so much of the workload now being cloud-based, your network infrastructure must keep up with demand.

Some improvements you can make to your wireless network include upgrading from a single-router system to a mesh network and upgrading to Wi-Fi 6 at the same time.

Improvements that these two technologies bring are:

  • Faster network speed
  • Better reliability
  • Eliminates weak Wi-Fi signal areas
  • Increases signal reach
  • Improves Wi-Fi security 

4. HD Webcam & Soundbar

Video conferencing has become the new default for business meetings, and often the first impression you make has to do with how well your sound and audio quality are.

Investing in a high-definition webcam and soundbar to improve the quality of your video conferences can benefit your overall business perception when meeting with potential clients. It can also improve the efficiency of your meetings because no one has to pause and repeat what they said due to sound issues.

5. VoIP Equipment 

VoIP phone systems are replacing traditional landline systems across the country. The pandemic made it clear that companies need as many of their processes in the cloud as possible.

You can enhance your team’s experience when switching to a VoIP phone system by providing them with things like headsets and VoIP-enabled desk phones to give them more choices in how they make and receive calls.

6. PCs with Windows 11 Installed

With Windows 11 just being released, it’s a good time to do an inventory of your business PCs to see if any are too old to make the upgrade.

If you replace those older computers now with new PCs with Windows 11 already installed, you can deduct the cost and 100% of the depreciation in just a few months come tax time.

Windows 11 is an upgrade that businesses will want to make sooner rather than later for a couple of key reasons. First, it’s not such as drastic upgrade that it’s going to have a large learning curve for your employees. Second, the updated OS has some great time-saving features like click to call using Teams from the taskbar and snap layouts for optimized multi-app workflows.

Get Help With Valuable Upgrades to Your IT Infrastructure

Onsite Techs of Rhode Island can sit down with your business and help you make the best decisions for your year-end upgrades that will bring value to your company and users.  

Contact us today to schedule a consultation at 401-773-7766 or book a video call now.