Disclaimer: We are neither accountants nor tax lawyers. This should in no way be construed as tax advice. Talk to your CPA or visit www.irs.gov for details.
"If you’ve been contemplating a software or hardware purchase, there is no better time than now to take action. Congress has extended IRS Section 179 to cover the 2011 tax year," according to this VAR. "This means, businesses are allowed to deduct the full purchase price of qualifying equipment (including software and hardware) purchased or financed during the tax year instead of being amortized over several years. In 2011, the amount you can write off has gone up to $500,000 (from $250,000 in 2010) and the total amount of equipment that can be purchased increased to $2 million. It’s an incentive created by the U.S. Government to encourage businesses to buy equipment and invest in themselves."
This VAR writes that "Congress decided to prolong IRS Section 179 to cover the 2011 tax year. That means eligible business equipment purchases (including most computer hardware and software) can be deducted at full cost on your 2011 business taxes, instead of being amortized over several years."
For tax year 2011, this means the equipment must be put into service between 01/01/2011 and 12/31/2011.
Section179.org seems to have up-to-date info. But the IRS has pdf's here and the instructions for form 4562 are here to claim your deduction for depreciation and amortization; make the election under section 179 to expense certain property; and provide information on the business/investment use of automobiles and other listed property.
Again check with your tax specialist, but it could be a way to make purchases AND to get prospects to buy NOW!
For example, if a prospect was to purchase $10,000 of IT equipment by December 31st and were in the 35% tax bracket, they could write off $3,500. The equipment’s net cost to them is $6,500.
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