Does Purchasing a New Pos System for my Business Qualify for the Section 179 Tax Deduction?
Yes, a new POS system typically qualifies for the Section 179 tax deduction. This provision allows you to write off the full cost of qualifying hardware and software in the year of purchase rather than depreciating it over several years.
Qualifying assets include a wide range of tangible personal property such as:
- POS hardware: Touchscreen terminals, card readers, tablets, barcode scanners, receipt printers, and cash drawers.
- POS software: Off-the-shelf business operation software, including software bundled with hardware that is essential for operation.
To be eligible, the equipment must be used more than 50% for your business and must be “placed in service”—meaning it is installed and operational—by the end of the tax year.
At POS Brokers, we are your partner for better payment processing and can help you select the right equipment to maximize these savings. We offer a broad selection of platforms, including Clover, Lavu, Linga, Revel, and ShopKeep, and we work to qualify merchants for free or discounted hardware placements with no setup or cancellation fees.
Disclaimer: Merchant must qualify for free or discounted hardware. We recommend consulting a tax professional to verify current IRS limits and eligibility for your specific business structure.
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