How Can You Qualify For An Awesome Tax Deduction?
There are two MAJOR end-of-life deadlines coming up: Windows Server 2008 and Windows 7. Here’s how to keep your environment safe AND get an awesome tax deduction while you’re at it… Some things in life were built to last, but computer hardware and software? That’s a different story altogether. Technology tends to have a short lifecycle, especially as advancements are always happening in the name of innovation. Sure, you might replace your workstations, servers, and other equipment when it starts to lag or it falls out of warranty, but every once in awhile, you’re forced to upgrade due to a product’s end-of-life. Windows Server 2003 and Windows XP are two great examples of this scenario. Microsoft stopped issuing updates and patches for them, and in turn, they became much more vulnerable to cybercrime. And to make matters worse, many vendors stopped creating software that was compatible with them. Now there are two more MAJOR end-of-life deadlines coming up: Windows Server 2008 and Windows 7. Simply put, it’s time to upgrade. If you choose not to upgrade because you don’t want to spend the money or put in the effort, you’re bound to face the consequences:
- Greater security risks as there will no longer be updates and bug fixes released, which means many vulnerabilities will go unpatched. Hackers are much quicker to exploit unpatched vulnerabilities and no amount of advanced security solutions will be able to protect you.
- Less software compatibility as new applications are created to work with recent operating systems rather than outdated, antiquated operating systems that aren’t supported. You can expect incompatibility to become a problem – leaving you stuck with legacy applications that are also likely unsupported.
- Higher operating costs as end-of-life equipment can be incredibly expensive to maintain in terms of paying for patches and bug fixes, troubleshooting to resolve compatibility issues, and assistance when infections occur. The cost of supporting end-of-life equipment will be much higher than the cost of upgrading.
- More compliance challenges as any regulated industry typically requires safeguards and/or technical specifications to be in place to protect sensitive information. An unsupported operating system simply doesn’t meet those requirements as you’re not able to adequately prevent unauthorized access.
January, 14, 2020: Mark This Date on Your Calendars
On January 14, 2020, Microsoft will no longer support Windows 7 AND Windows Server 2008. Although end-of-life mainstream support for Windows Server ended on January 13, 2015, Microsoft will end support altogether on January 14, 2020. If you’re still running Windows 7, Window Server 2003 or running Hyper-V on a Windows Server 2008 R2 platform, it’s time to upgrade.
Section 179: an incentive designed to help businesses like yours grow…
If you’re on the fence about upgrading due to the costs, there are ways to offset it. Section 179 is a tax code that lets you take an immediate expense deduction for qualifying purchases rather than capitalizing and depreciating the asset. Essentially, you can purchase, finance or lease equipment and receive a huge break in terms of your tax burden. This is particularly helpful for businesses that want to grow with a safe, reliable environment without forking over the hefty price of buying equipment.
How does it work?
If you purchase, finance or lease a piece of equipment, you can use the deduction, as long as the full amount of the purchase price is eligible. The deduction limit for 2019 is $1,000,000 – a lot of money put back into your bottom line, right? You must purchase, finance or lease the equipment before the deadline: December 31, 2019 at midnight. The deadline to take advantage of this awesome tax deduction happens to be RIGHT before the end-of-life deadline for Windows 7 and Windows Server 2008. Coincidence? Totally, but still VERY helpful. Contact us at (916) 441-3838
for more information. TLC Tech is the leading IT services company in Sacramento, CA. Like this article? Here’s a few more: OneDrive or SharePoint? Will Windows 7 Work in 2020? Phishing Attacks Continue to Soar!