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The Jobs and Growth Tax Relief Reconciliation Act of 2003 was the largest tax cut in U.S. history and it provides a huge expense benefit to small businesses. Section 179 of the act specifies a significant deduction for small businesses purchasing new equipment. This "use it or lose it" opportunity allows you to outright expense four times the amount of equipment purchases you could a few years ago.
This ability to expense on the front end instead of depreciate the value of the equipment over several years can significantly reduce your tax burden for 2006 and increase cash flow. It also makes it easier to get the equipment you need to streamline processes and ramp up productivity.
For 2006, after an adjustment for inflation, the amount you can expense has increased to a maximum of $108,000 for equipment that is in service by the end of the year. Qualifying property includes office equipment, computers, off-the-shelf software, furniture and other property. It does not include real estate or buildings. Amounts beyond $108,000 cannot be expensed but can be deducted over the next several years under the normal depreciation schedule.
It's also important to assess your total yearly capital expenses before expensing large purchases. If your company will spend more than $430,000 in total capital expenses for 2006, you will begin to see a decrease in the amount you can expense. And if your business spends more than $500,000 in total capital expenses, you cannot expense anything, though you can still follow the normal depreciation schedule.
PC refreshes save money and time
So, what is the optimal technology refresh and upgrade cycle? Is it cost and time efficient to keep your old PCs? Ultimately, you must make tech refresh decisions based on organizational enhancements attributable to two criteria: reductions in total cost of ownership (TCO) and return-on-investment (ROI) increases.
The TCO, productivity and security perspectives
Once a PC is more than three years old, it often costs more to continue maintaining it than it would to purchase new equipment. In the first two or three years of PC ownership, routine maintenance is minimal and warranties are still in place during this period in the event of a serious malfunction. But by the time your PCs enter their fourth year, they become more expensive to maintain. TCO is on a steady increase from this point on.
 Your business will realize productivity gains through the speed and efficiency that accompany the enhanced operating systems, faster processors and larger storage capabilities of newer PCs. And if your equipment is old, you're compromising the security of your business. Dated PC security protocols create security gaps that expose your network and create problems. When you move to new equipment, you get stronger security. New PCs allow you to run continuous virus scanning and file encryption programs without disruption to users.
Notebooks increase your productivity potential
This is a great time to consider providing your staff with notebook PCs. Giving your employees use of mobile and wireless technologies also improves your bottom line by enabling employees to be flexible in where and when they can work.
Notebooks have also seen significant increases in the area of data protection in recent years. Virtual private network (VPN) software allows secure connections to your network from outside the office. And technologies such as biometric fingerprint sensors and encryption keys make access to the notebook and its contents more difficult for unauthorized users.
Color printing gets you noticed
Presentation materials are more effective and carry greater impact when printed in color. Thanks to software that makes formatting much simpler, you can print high-quality brochures, postcards, shelf labels and signage in-house.
Color printers are more affordable than ever. Not only are purchase costs lower, TCO has dropped dramatically thanks to thoughtful engineering and customized printer management capabilities. And with the proliferation of affordable multifunction printers (MFPs), many businesses are finding new levels of efficiency with the capability to copy, fax and print from one machine.
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Trend Micro Client Server Messaging Security and Anti-Spyware for SMB
Protect PCs, servers and e-mail against viruses, spam, spyware and hackers with an all-in-one integrated defense
CDW 1022548
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Allied Telesis AT-8000S/24POE Layer 2 Stackable Fast Ethernet Switch
Get high-performance, Layer 2 switching in a fixed-configuration platform that can power IP phones and wireless access point
CDW 1003791
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D-Link DI-624S 108Mbps Wireless Storage Router
Create an 802.11g wireless network that shares a broadband Internet connection across your office
CDW 735650
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