Cybersecurity is a top priority for businesses of all sizes. But with the ever-changing threat landscape, it can be costly for small businesses to keep up with the latest technologies and solutions.
That's where Section 179 of the Internal Revenue Code (IRC) comes in. Section 179 is a tax deduction that allows businesses to deduct the full cost of qualifying equipment and software purchased during the tax year. This includes cybersecurity software and hardware.
What types of cybersecurity software and hardware qualify for Section 179?
A wide range of cybersecurity software and hardware qualifies for Section 179, including:
- Intrusion detection and prevention systems (IDS/IPS)
- Antivirus and anti-malware software
- Data encryption software
- Security awareness training software
- Physical security devices (e.g., security cameras and access control systems)
How does Section 179 work for cybersecurity investments?
To take advantage of the Section 179 deduction, businesses must purchase or finance qualifying cybersecurity software and hardware during the tax year and place it into service by the end of the year. Once the equipment is in service, businesses can deduct the full cost of the equipment from their taxable income.
How can businesses benefit from using Section 179 for cybersecurity investments?
There are a number of benefits to using Section 179 for cybersecurity investments, including:
- Reduced taxes: Businesses can deduct the full cost of qualifying cybersecurity software and hardware from their taxable income, which can lead to significant tax savings.
- Improved security: By investing in the latest cybersecurity technologies, businesses can improve their security posture and reduce the risk of cyberattacks.
- Increased productivity: Cybersecurity incidents can lead to costly downtime and disruptions to business operations. By investing in cybersecurity, businesses can reduce the risk of these incidents and improve employee productivity.
How can businesses get started with using Section 179 for cybersecurity investments?
The first step is to identify the cybersecurity software and hardware that your business needs. We can help you with that process. So, the next step is to schedule time with one of our expert IT consultants to discuss what you have in mind. You can do start with a simple introductory 10-minute discovery call.
It is also important to work with a tax advisor to ensure that you are meeting all of the requirements for Section 179 eligibility. Your tax advisor can also help you to calculate your deduction and file your taxes correctly.
THE VECTOR CHOICE ADVANTAGE
Vector Choice can help you with all of your cybersecurity needs. We can help you to identify your security risks, select the right security solutions for your business, and implement and manage those solutions.
We can also help you to take advantage of Section 179 to save money on your cybersecurity investments. Schedule a FREE 10-minute discovery call today to learn more about how we can help you protect your business from cyber threats.