As we approach the end of the calendar year many businesses meet with their CPA to discuss areas to lessen their tax burden. During my nearly 3 decades in the office equipment industry I’ve often been asked whether a copier purchase can be used as a tax write off. As with any advice or information pertaining to taxes I will offer the caveat that you should always consult your business CPA to clarify tax laws and how they apply to your own specific business. That being said, for many if not most corporations a business copy machine can be an attractive tax write off in any given tax year.

In most cases a piece of office equipment such as a copier is listed as a capital expenditure and is therefore depreciated as an asset over 5 years. However, there is a specific tax deduction that is allowed for many if not most businesses that allows you to write off any one office equipment purchase in the year the purchase was made without depreciating it over 5 years; meaning that if the copier is the largest single office equipment expenditure that your business has purchased during a given tax year, in most cases you are able to take the deduction for the full purchase amount in the tax year that the copy machine was purchased.

Because a business copy machine is generally a fairly significant office expenditure that many companies make on average of once every five years this tax deduction may be an exciting incentive for businesses to consider if they are actively looking for deductions during the tax year when the purchase is made. As an example, if your corporation is in a 40% tax bracket and you take into account that the average business copy machine is purchased for approximately $7,500.00 this deduction can save your business approximately $3,000.00 in taxes.

In the event that your corporation is looking to lessen taxable profits and there is a potential need to purchase a new business copy machine or any piece of office equipment it might be a good strategy to consider an outright purchase of a machine prior to the end of the calendar year. Once again, the writer of this blog strongly urges you to consult with your CPA to learn more about this deduction and how it applies to your business.

Leasing vs. Buying: How It Affects Your Tax Write-Off

Many businesses assume purchasing a copier is the only way to take advantage of tax deductions, but leasing can also offer financial benefits. While purchasing a copier may qualify for a full deduction under Section 179, leasing payments are often classified as operating expenses, which means they can be deducted as part of your business’s ongoing costs. This can improve cash flow while still reducing your taxable income. Depending on your financial strategy, leasing could be a more flexible option.

Section 179 vs. Bonus Depreciation: Which Is Better?

The Section 179 deduction allows businesses to deduct the full cost of qualifying equipment in the year it’s purchased, up to a certain limit. However, businesses can also take advantage of bonus depreciation, which enables them to write off a percentage of equipment costs immediately—typically 80% in 2024, with reductions planned in future years. The key difference? Section 179 is limited to businesses with taxable profits, while bonus depreciation can be used even if your company reports a loss, making it a valuable tool for startups and growing businesses.

Eco-Friendly Copiers and Additional Tax Incentives

With the push toward sustainability, businesses investing in energy-efficient office equipment may qualify for additional tax credits. Some states and local governments offer incentives for purchasing ENERGY STAR-certified copiers, reducing not just tax liabilities but also long-term operational costs. Investing in an eco-friendly copier could save your company thousands over time while supporting corporate sustainability goals. Always check for available tax credits or incentives before making a purchase.

Timing Your Copier Purchase for Maximum Tax Savings

Strategic timing plays a crucial role in maximizing tax deductions for office equipment. If you’re considering purchasing a copier, doing so in the fourth quarter of the year can provide immediate tax benefits. Under Section 179, businesses can deduct the full cost of qualifying equipment placed into service before December 31st. Waiting until the new year could delay potential deductions, so if your company needs a copier upgrade, acting before year-end might be a smart financial move.

How State and Local Tax Laws Impact Your Deduction

While federal tax laws like Section 179 and bonus depreciation provide significant write-offs, many states have their own rules regarding business equipment deductions. Some states conform to federal tax laws, while others impose limits on how much can be deducted in a single year. Additionally, local jurisdictions may offer incentives for businesses investing in technology upgrades. Checking with a tax professional familiar with your state’s tax code ensures you maximize your copier-related savings.