Time is running out. With just 20 days left in 2025, small business owners in Peterborough have a golden opportunity to slash their tax bill while upgrading critical technology. The key? Understanding Section 179 expensing and acting fast.
If you've been putting off that computer upgrade, server replacement, or software purchase, now might be the perfect time to pull the trigger. The tax benefits alone could make your decision a no-brainer.
Why December Is Your Best Friend (Tax-Wise)
Section 179 allows businesses to deduct the full cost of qualifying equipment purchases in the year they're placed in service, rather than spreading deductions over multiple years. But here's the catch: your equipment must be purchased AND operational by December 31, 2025.
For 2025, you can deduct up to $2.5 million in qualifying purchases. The phase-out begins once your total purchases exceed $4 million, but let's be honest: most Peterborough small businesses won't hit that threshold.
Think about it this way: instead of writing off a $10,000 computer purchase over several years, you can claim the entire deduction on your 2025 taxes. That's immediate cash flow relief when your business needs it most.
What Tech Purchases Actually Qualify
The good news? Most technology purchases small businesses make qualify for Section 179. Here's what's on the approved list:
Computers and Hardware
- Desktop computers and laptops
- Servers and networking equipment
- Tablets and mobile devices
- Printers, copiers, and scanners
Software Solutions
- Off-the-shelf business software
- Accounting and CRM systems
- Security and antivirus programs
- Productivity suites
Business Infrastructure
- Phone systems and VoIP equipment
- Security cameras and access systems
- Wi-Fi and networking hardware
- Backup systems and storage
The critical requirement? You must use the equipment for business purposes more than 50% of the time. If you buy a laptop that's 60% business use, you can deduct 60% of the cost.
Your 20-Day Action Plan
Week 1: Assess and Decide
Take a hard look at your current technology. What's slowing you down? What keeps breaking? What security risks are you facing? Make a prioritized list of needed upgrades.
Don't just think about what's broken: consider what could make your business more efficient. That new server could eliminate those frustrating "network down" days. Updated computers could save your team hours of waiting for programs to load.
Week 2: Purchase and Install
Here's where the December 31st deadline gets real. You can't just order equipment and call it a day. It needs to be delivered, installed, and actively used in your business before the clock strikes midnight on New Year's Eve.
This is where partnering with a local IT company makes all the difference. We can expedite orders, handle installations, and make sure everything is running smoothly before the deadline.
Week 3: Document Everything
Keep every receipt, invoice, and piece of documentation related to your purchase. If the IRS ever asks questions, you'll need proof of purchase date, business use percentage, and when the equipment was placed in service.
Real Numbers: What You Could Save
Let's run through a realistic example for a Peterborough small business:
Scenario: You purchase $25,000 in new computers and software before year-end.
- Section 179 deduction: $25,000 in 2025
- Tax savings (assuming 25% bracket): $6,250
- Net cost of equipment: $18,750
That's a 25% discount on technology your business needed anyway. The savings get even better if you're in a higher tax bracket.
For larger purchases, the numbers become even more compelling. A $75,000 server and networking upgrade could save you over $18,000 in taxes while dramatically improving your business operations.
How Preferred Computer Solutions Makes This Easy
Navigating last-minute tech purchases doesn't have to be stressful. Here's how we help Peterborough businesses maximize their year-end savings:
Equipment Selection and Sizing
We work with you to identify the right technology for your specific needs and budget. No overselling, no undersizing: just the equipment that will serve your business best.
Expedited Installation
Our certified technicians prioritize year-end installations to ensure your equipment is operational before December 31st. We understand the deadline pressure and plan accordingly.
Data Transfer and Setup
New equipment is only valuable if your data and settings transfer correctly. We handle the migration process, ensuring zero downtime and no lost information.
Documentation Support
We provide detailed invoices and installation documentation to support your tax deduction claims.
Beyond Section 179: Bonus Depreciation
If your purchases exceed the Section 179 limits or you want to maximize deductions across multiple years, bonus depreciation serves as an additional tool. This provision allows you to deduct a significant percentage of remaining costs immediately.
The combination of Section 179 and bonus depreciation often means you can write off nearly 100% of qualifying equipment costs in the purchase year.
Don't Forget About Financing Options
Cash flow tight? Many equipment purchases can be financed, and you can still claim the full Section 179 deduction in the purchase year: even if you're making payments over time.
We work with several financing partners who specialize in business technology purchases. This allows you to get the tax benefits immediately while spreading the cash outlay over months or years.
State Tax Considerations
While Section 179 is a federal deduction, New Hampshire's business tax structure means the benefits flow through differently depending on your business type. Since we don't have state income tax for individuals, the federal savings often represent your entire tax benefit.
For businesses subject to New Hampshire's Business Enterprise Tax or Business Profits Tax, consult with your accountant about how Section 179 deductions impact your state obligations.
The Clock Is Ticking
Here's the reality: with just 20 days left in 2025, this window is closing fast. Equipment manufacturers and IT service providers are already seeing increased demand as businesses rush to meet the December 31st deadline.
Popular items like business laptops and servers may face longer lead times. Software licenses might require additional setup time. Don't wait until Christmas week to start this process.
Next Steps
Ready to take advantage of year-end tax savings while upgrading your technology? Here's what to do right now:
- Call us today to schedule a consultation about your technology needs
- Get quotes on the equipment that will make the biggest impact on your business
- Place orders by December 20th to ensure delivery and installation before year-end
- Schedule installation as soon as equipment arrives
The combination of immediate tax savings and improved business efficiency makes this one of the best investments you can make before 2025 ends.
Your future self will thank you for taking action now: both when filing taxes and when enjoying faster, more reliable technology throughout 2026.
Contact Preferred Computer Solutions today at https://www.pcs-nh.com to discuss your year-end technology upgrade options. Let's make sure you're getting every tax advantage available while setting your business up for a productive new year.
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