How Section 179 Works: Step-by-Step Guide

Save Thousands on Your 2025 Taxes While Upgrading Your Business Technology

Simple. Responsive. Secure. Savings.

The Smart Business Owner's Guide to Section 179 Tax Savings in Dallas-Fort Worth

If you're planning to upgrade computers, servers, cybersecurity systems, or business software in 2025, you need to know about Section 179. This powerful tax deduction could save your business thousands of dollars - but only if you act before December 31, 2025.

Here's what you need to know right now:

The 2025 Section 179 tax deduction allows your Dallas-Fort Worth business to immediately write off up to $2,500,000 in qualifying IT equipment and software purchases. Instead of depreciating technology costs over multiple years, you can deduct the full amount from your 2025 taxable income - giving your bottom line an immediate boost.

At myIT.com, we've helped hundreds of businesses across Bedford, Arlington, Grapevine, Southlake, and Mansfield maximize their Section 179 savings while building stronger, more secure IT infrastructure for years to come.

The deadline is December 31, 2025. Here's how to make it work for you.

What Is Section 179 and How Does It Save You Money?

Section 179 of the IRS tax code is specifically designed to encourage business growth by letting companies deduct the full purchase price of qualifying equipment placed in service during the tax year.

Think of it this way: if you spend $100,000 on new computers, servers, and cybersecurity equipment in 2025, you can write off that entire $100,000 on your 2025 tax return - rather than spreading the deduction over 5-7 years through traditional depreciation.

2025 Section 179 Limits at a Glance:

• Maximum Deduction: $2,500,000
• Phase-Out Threshold: Begins at $4,000,000 in total qualifying purchases
• Complete Phase-Out: $6,500,000
• Bonus Depreciation: 100% available after Section 179 is applied
• Critical Deadline: December 31, 2025 (equipment must be purchased AND in use)

Source: Section179.org (2025 Guidelines)

 

Why this matters for DFW businesses: Whether you run a construction company in Fort Worth, a manufacturing facility in Arlington, or a non-profit in Dallas, this deduction helps you invest in technology that protects your operations while reducing your tax burden.

What IT Equipment and Software Qualifies for Section 179 in 2025?

According to the IRS and Section179.org, most tangible business equipment and software purchased for business use qualifies. Here's what Dallas-Fort Worth businesses commonly deduct:

Computer Systems & Hardware

• Desktop computers, laptops, and workstations
• Servers and data storage systems
• Network hardware: routers, switches, firewalls, and cabling infrastructure

Business Software & Cloud Solutions

• Off-the-shelf business software (accounting, CRM, project management)
• Cloud backup appliances and disaster recovery systems
• Microsoft 365, enterprise software licenses, and productivity tools

Cybersecurity & Infrastructure

• Firewall appliances and network security systems
• VoIP phone systems and unified communications equipment
• Data recovery equipment and backup solutions
• Security cameras and access control systems

Office Equipment & Vehicles

• Printers, scanners, and office electronics
• Furniture directly used in business operations
• Commercial vehicles over 6,000 lbs GVWR (deduction limited to $31,300 for 2025)

Bottom line: If it helps you run your business more efficiently, securely, or profitably - it likely qualifies for Section 179.

Not sure what qualifies? Our team at myIT.com can review your planned purchases and confirm eligibility before you buy.

How Section 179 Works: A Step-by-Step Guide for Business Owners

Claiming the Section 179 deduction is straightforward when you know the process. Here's how to maximize your savings:

Step 1: Identify Your IT Needs & Budget

Start by assessing your current technology infrastructure. What's outdated? What's creating security risks? What do you need to support business growth in 2025 and beyond?

myIT.com tip: Don't buy technology just for the tax break. Invest in equipment that strengthens your operations for the long term - the tax savings are an added bonus.

Step 2: Purchase Qualifying Equipment

Buy or finance qualifying IT equipment and software in 2025. Both purchased and financed equipment qualify, giving you flexibility with cash flow.

Step 3: Place Equipment in Service Before December 31, 2025

This is critical: equipment must be installed, operational, and actively used in your business before midnight on December 31, 2025. Simply placing an order isn't enough - it must be deployed and working.

Warning for Q4 buyers: Supply chain delays, shipping times, and installation schedules can push deployment into January if you wait too long. Start planning now to avoid missing the deadline.

Step 4: Document Everything for Your CPA

Keep detailed records of:

• Purchase invoices and receipts
• Installation dates and placed-in-service documentation
• Equipment specifications and business-use justification

myIT.com provides comprehensive documentation packages that make tax time effortless for you and your accountant.

Step 5: Claim Your Deduction

Work with your CPA or tax advisor to claim up to $2,500,000 in Section 179 deductions on your 2025 business tax return. The immediate write-off reduces your taxable income and boosts cash flow.

Why Dallas-Fort Worth Businesses Choose myIT.com for Section 179 Planning

Tax savings are important - but technology decisions shouldn't just meet a deadline. They should strengthen your business for years to come.

At myIT.com, we've spent 25 years helping Dallas-Fort Worth businesses make smart technology investments that deliver security, performance, and peace of mind. When you partner with us for Section 179 planning, you get more than just equipment - you get a strategic technology roadmap.

How We Make Section 179 Simple, Responsive & Secure

IT Assessment & Section 179 Eligibility Review
We analyze your current infrastructure, identify gaps and vulnerabilities, and determine exactly what qualifies for the deduction. No guesswork - just clear recommendations.

Strategic Budget & Upgrade Planning
We align your technology goals with the Section 179 window, ensuring you maximize tax benefits while building infrastructure that supports your business objectives.

Fast Procurement & Professional Deployment
Time is critical in Q4. We source equipment quickly, handle installation professionally, and ensure everything is operational before December 31st. No delays, no excuses.

Complete Documentation for Your CPA
We provide itemized invoices, placed-in-service dates, and equipment specifications your accountant needs to process your deduction smoothly.

Ongoing Support & Security
After installation, we don't disappear. We monitor, maintain, and protect your systems with proactive IT support - so your investment continues delivering value year after year.

Industries We Serve in DFW

With headquarters in Bedford, Texas, myIT.com specializes in IT support for:

• Construction companies (managing project data, field communications, and compliance)
• Manufacturing facilities (protecting operational technology and supply chain systems)
• Non-profit organizations (maximizing limited budgets while maintaining donor data security)

We understand the unique challenges facing businesses across Dallas, Fort Worth, Arlington, Grapevine, Southlake, Mansfield, and surrounding communities.

The December 31, 2025 Deadline Is Closer Than You Think

To claim the 2025 Section 179 deduction, all qualifying property must be purchased AND placed in service by midnight on December 31, 2025.

Here's what many business owners don't realize: "placed in service" means fully installed and operational - not just ordered or delivered.

Why Waiting Until Q4 Is Risky

Supply chain delays: Equipment shortages and shipping delays can push delivery dates into January.

Installation bottlenecks: IT service providers get slammed in November and December. Scheduling can be difficult.

Configuration time: Servers, networks, and software systems require setup, testing, and deployment time.

Year-end chaos: The final weeks of December are hectic for every business. Technology projects get deprioritized.

The solution? Start planning your Section 179 upgrades now. Even if you're reading this in Q2 or Q3, early planning ensures you have time to make strategic decisions, avoid rushed purchases, and deploy systems properly.

Don't leave thousands of dollars on the table. The Section 179 deduction is one of the most powerful tax benefits available to businesses - but it only works if you meet the deadline.

Real Section 179 Scenarios: How DFW Businesses Save

Example 1: Construction Company in Fort Worth

Challenge: Outdated computers, no cybersecurity, unreliable backups
Investment: $75,000 in new workstations, firewall, cloud backup, and VoIP system
Section 179 Benefit: $75,000 immediate tax deduction (potential savings: $15,000-$27,000 depending on tax bracket)
Result: Modern, secure infrastructure + significant tax savings

Example 2: Manufacturing Facility in Arlington

Challenge: Windows 10 end-of-life, aging servers, compliance concerns
Investment: $180,000 in new servers, Windows 11 upgrades, network infrastructure
Section 179 Benefit: $180,000 immediate tax deduction (potential savings: $36,000-$64,800)
Result: Secure, compliant operations + improved productivity + major tax benefit

Example 3: Non-Profit in Dallas

Challenge: Limited budget, need donor management systems and security upgrades
Investment: $35,000 in workstations, Microsoft 365, cybersecurity tools
Section 179 Benefit: $35,000 immediate tax deduction (helps offset costs through tax savings)
Result: Better donor data protection + efficient operations on a tight budget

Note: Tax savings examples are illustrative. Actual savings depend on your business's tax situation. Always consult your CPA or tax advisor.

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Frequently Asked Questions About Section 179 in 2025

How much can I deduct under Section 179 in 2025?

Businesses can deduct up to $2,500,000 of qualifying equipment and software purchases in 2025. The deduction begins to phase out when total purchases exceed $4,000,000.

Source: Section179.org (2025 Tax Year Guidelines)

Can I use Section 179 for used equipment?

Yes - as long as the equipment is new to your business and placed in service during 2025. This is perfect for businesses buying refurbished servers or upgrading to pre-owned vehicles.

Does business software qualify for Section 179?

Yes. Off-the-shelf business software qualifies for Section 179. This includes:

• Microsoft 365 and enterprise software licenses
• Accounting software (QuickBooks, Sage, etc.)
• CRM and project management tools
• Cybersecurity and backup software

Custom-developed software may have different rules - consult your CPA.

What's the actual deadline for Section 179 in 2025?

Equipment must be purchased AND placed in service by December 31, 2025. "Placed in service" means installed, operational, and actively used in your business.

Orders placed in December but delivered in January do not qualify for the 2025 deduction.

Can I finance equipment and still claim Section 179?

Absolutely. Both purchased and financed equipment qualify for Section 179 - as long as it's placed in service by the deadline. This gives you flexibility to preserve cash flow while still claiming the full deduction.

Can I combine Section 179 with bonus depreciation?

Yes. Many businesses maximize tax benefits by using Section 179 first (up to $2.5M), then applying 100% bonus depreciation to any remaining qualifying purchases. Your CPA can help structure this for maximum savings.

Do I need to use equipment 100% for business to claim Section 179?

The equipment must be used more than 50% for business purposes to qualify. If you use equipment for both personal and business use, only the business-use percentage qualifies for the deduction.

What if I buy equipment but my business doesn't make a profit in 2025?

Section 179 deductions cannot create a business loss. If your deduction exceeds your taxable income, you can carry forward the unused portion to future tax years. Talk to your accountant about the best strategy for your situation.

Does leased equipment qualify?

It depends on the lease structure. True operating leases typically don't qualify, but capital leases (where you own the equipment at the end) may qualify. Your CPA can advise based on your specific lease terms.

Don't Wait Until It's Too Late: Start Your Section 179 Plan Today

Every year, we talk to business owners in late December who missed the Section 179 deadline - and it's painful to watch them lose out on tens of thousands in tax savings.

Here's the truth: The businesses that maximize Section 179 aren't the ones who wait until Q4 to panic-buy equipment. They're the ones who plan strategically throughout the year, invest in technology that genuinely improves operations, and work with IT partners who understand both technology and business.

At myIT.com, we've helped Dallas-Fort Worth businesses save millions in taxes while building stronger, more secure technology infrastructure. We can do the same for you.

Ready to Maximize Your 2025 Section 179 Deduction?

Let's build your upgrade plan - Simple. Responsive. Secure.

Whether you need new servers, cybersecurity upgrades, cloud solutions, or a complete IT overhaul, myIT.com makes the process effortless from assessment to deployment to ongoing support.

Contact myIT.com Today

📞 Call: (817) 835-0000
📧 Email: info@myIT.com.com
🌐 Schedule a Consultation: https://www.myit.com/section-179/

 

Serving Dallas–Fort Worth from our Bedford, Texas headquarters:
Dallas • Fort Worth • Arlington • Grapevine • Southlake • Mansfield • Bedford • Irving • Plano • and surrounding DFW communities

With 25 years of IT excellence, we're confident in our ability to guide, support, maintain, and protect our clients.

Don't hand over one penny more to the IRS than necessary - and don't pay more for IT than you must. Start your Section 179 planning today and turn tax season into savings season.

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This information is provided for educational purposes. Section 179 rules are complex and vary by business situation. Always consult with a qualified CPA or tax advisor before making purchasing decisions. Section 179 limits and rules are subject to change by Congress.