What your small business needs to know about office equipment tax breaks in 2022

If you’re a small business owner, chances are you’re feeling a little unsure about the future. The economy is on shaky ground and many people are cutting back on their purchases to prepare for a possible recession. In addition, many small and medium-sized enterprises (SMEs) are struggling additional challenges fueled by the impact of the pandemic and other factors, including higher costs of goods and services, supply chain issues, increased competition, rising interest rates and difficulties in obtaining additional financing for expansion.

Fortunately, not everything is doom and gloom. To survive you need to increase your efficiency, optimize your business processes and save costs. To help, the U.S. government is offering solid 2022 tax breaks for office equipment, helping small businesses get and maintain the infrastructure they need to ensure business continuity.

Your guide to office equipment tax breaks in 2022

Let’s be honest. At the end of the day, it’s not the amount of revenue you earn during the year, but the amount that remains available after you subtract expenses that determines your overall profitability. Many costs are tax-deductible, including costs associated with marketing, staffing and, most importantly, the equipment you need to keep your business running. This year there are significant tax benefits to the purchase of much-needed office equipment before the end of the tax year, December 31, 2022. Let’s take a look at them:

Taking advantage of Article 179

If you purchase office equipment such as printers, copiers, scanners or multi-function devices (MFPs) with a useful life of more than one year, you must depreciate it over a certain period of time set by tax law. However, you can deduct a maximum of this year $1.08 million of the costs of eligible equipment, as long as they do not exceed the amount of your total annual taxable income. All equipment you claim must be used exclusively for business purposes at least half of the time during the first year of operation. Importantly, Section 179 allows all equipment put into service that calendar year, new or used, to qualify. That means the purchase of refurbished office equipment still qualifies for a deduction under this section.

Get a bonus with bonus depreciation

If you have purchased tangible fixed assets and fixed assets such as office equipment and ready-to-use computer software within the 2022 calendar year, you can deduct 100% of their costs using bonus depreciation. From 2020 through 2022, you can deduct 100%, but be prepared in 2023, that deduction cap drops to 80%, then to 60% in 2024, and so on, until it is finally abolished completely in 2027.

Maximizing the minimis

If you choose not to list an asset on your balance sheet, you can list it as non-incidental materials and supplies. This is an important category for things like printer ink and toner and other office equipment supplies. You must maintain a physical inventory of these items or provide your tax advisor with a consumption statement to qualify, but it does give you up to $2,500 in deductions per item or per invoice, with larger businesses having access to a higher limit on this charge.

Perry proTECH can help you take advantage of this year’s tax breaks

There’s never been a better time to get your hands on the equipment you need to help your business increase efficiency and productivity. A more efficient business is a more effective and competitive business, bringing you more prosperity in the new year.

At Perry proTECH, we stock a wide variety of state-of-the-art office equipment, along with the supplies you need to keep things running and productive. Our partnerships with industry leaders in the print and imaging industry enable us to offer our customers greater choice and value. And our in-house team of experts can help you assess your needs to optimize your infrastructure so you get exactly what you need at a price that fits your budget. Finally, we can help you properly maintain your equipment for a longer life and a better return on your investment.

Take advantage of major tax benefits in 2022. Please contact a Perry proTECH advisor and get the office equipment you need to keep your business ahead of the competition.