Voip > News > Don't Miss Out On 2006 VOIP Equipment Tax Breaks
Don't Miss Out On 2006 VOIP Equipment Tax Breaks
By Ferenc Veres
Published: December 14, 2006
Boca Raton, FL- December 10, 2006 - voip.com- Popular voip internet phone service provider, voip.com, reminds small business owners that the Section 179 deadline is right around the corner. Taxpayers have until December 31, 2006 to take advantage of this year's Section 179 deductions, which allow businesses to immediately receive the full write-off for certain capital expenditures, instead of having to spread it out over the course of several years.
Eligible items include off-the-shelf software and voip telephone systems, so for business that are still undecided about initiating a new voip rollout, this is the perfect time to jump down off the fence. 100% of the purchase price for any voip phone system bought and put into place during 2006 can be written off, provided the combined amount of all expensed equipment is no more than $108,000 and the equipment is being used more than 50% of the time.
Amounts greater than $108,000 must be depreciated and companies spending more than $430,000 on capital expenditures in a single year should expect to find their expensing limit reduced by a figure equal to the amount they're over. This means that if your eligible expenses exceed the $430,000 cap by more than $108,000, you won't be able to take the Section 179 deduction at all. Equipment that was bought from family members or organizations where the buyer maintains a controlling interest is not eligible for deduction under Section 179 guidelines.
Section 179 was designed as an incentive to encourage businesses to invest in new technology. Prior to the Jobs and Growth act of 2003, the maximum allowable Section 179 deduction was $25,000. Now more than four times the old limit, this increase is slated to expire by 2010 unless Congress grants another extension.
Companies should also be aware that state and local tax requirements may differ substantially from the federal code. Check with your personal tax advisor for questions about which deductions are best for your business.
For more voip tips and information, go to voip.com's comprehensive website at http://www.voip.com.