The Year-End Tax Move Most Business Owners Miss

We all know POS equipment costs can rack up quickly. From new terminals and printers to cash drawers and kitchen screens. Maybe you like to get fancy with order kiosks. It’s a necessary expense, but can be a big one.

Here’s what many owners miss:

If you purchase POS equipment and put it into service before year end, Section 179 may allow you to deduct a big chunk of that cost on your business taxes.

If you’re planning to upgrade anyway, now is the time to get the most bang for your buck.

What Section 179 Does in Plain English

Section 179 lets businesses deduct the cost of equipment in the year that it goes live.

According to the IRS, Form 4562 allows a Section 179 deduction of up to $2.5 million. Most small businesses won’t come close to that amount, but the concept is the same for everyone: if you’re going to purchase equipment, the tax timing can lower your actual cost.

How to Ensure Your Deduction Counts

Most owners make the mistake of assuming that if they buy it by year end, they’re good. However, the IRS focuses on equipment that’s placed in service. It must be ready and available to do its job. It can’t just be sitting in a box or waiting for install. The IRS gives specific examples where something delivered in one year counts for the next year because it wasn’t operational until later.

So the real question is: can your POS equipment be installed, set up, and ready to use by December 31, 2025?

Does POS Equipment Qualify for Section 179?

Most of the time, yes. Common examples of business equipment that may qualify are POS terminals, printers, scanners, cash drawers, back-office computers, and kitchen displays when used for your business. Your accountant will decide what qualifies in your situation. You just need to make sure you have the paperwork and the equipment is live before year end.