New tax break makes it easier for small businesses to invest in technology

New tax break makes it easier for small businesses to invest in technology

<p>Can your small business thrive if you are depending on outdated technology? Probably not. You need current technology these days to engage with your clients and customers, analyze sales trends and more efficiently handle everything from accounting to inventory. Fortunately, the American Taxpayer Relief Act of 2012 includes a hefty tax break for small businesses that invest in new technology. Here's a brief look from BizTech Magazine at how this tax break works and how it can help your small business stay on top of the technology curve.</p> <p><b>An important tax break</b></p> <p>The tech-spending tax break in the American Taxpayer Relief Act of 2012 is an important one. It enables businesses to write off up to $500,000 in technology and equipment products and services in 2013. That's a high amount, and it might encourage more business owners to spend money on new computers, energy efficient lighting, payroll software and analyzing tools. And these new tech purchases could help these business owners grow their bottom lines.</p> <p><b>A 2012 boost, too</b></p> <p>The tax relief act provides even more benefits to small business owners. According to the BizTech story, says that the new law also retroactively ups the total amount that businesses can deduct for equipment purchases made in 2012. This amount will be jumping considerably from $139,000 to $500,000. This retroactive move allows business owners to write off more of new tech or equipment purchases that they've already made.</p> <p><b>What it means</b></p> <p>It's very important for small business owners to take advantage of these tax breaks. They are, of course, important financial incentives intended to encourage small business owners to invest in the technology they need to prosper. Businesses must constantly evolve if they want to flourish today. One of the best approaches to do this is to invest in new technology and equipment, and the taxpayer relief act makes carrying this out more cost-effective.<br></p>