Tax Deductions and the COVID-19 Workplace SolutionWesley Sun
COVID-19 has brought an onslaught of additional expenses for businesses and organizations, including plexiglass barriers, new signage, personal protective equipment, increased cleaning protocols and more.
In this unrelenting cycle of bad news, a recent development in the field of taxes may provide some hope.
A 2017 change to the Internal Revenue Code allows business owners to use bonus depreciation to deduct 100 percent of an asset’s cost upfront. (Before the change, only 50 percent could be deducted upfront.) It also increases the maximum deduction from $500,000 to $1 million.
The deduction applies to any piece of qualified property acquired and placed in service after Sept. 27, 2017, and before Jan. 1, 2023.
Before we dive into the specifics of the tax code, let’s take a quick look at how this change could benefit businesses struggling to make it through the pandemic.
Business owners have responded to the pandemic with creative solutions, ranging from increased outdoor seating for restaurants to new HVAC systems to improve ventilation.
In other words,most businesses are doing their best to stay open — and they’ll do whatever it takes to make that happen.
The COVID-19 Workplace Solution by Turing is unique because it has already helped more than 1,000 businesses and organizations in the United States and beyond to reopen and stay open. The list, which is growing daily, includes Costco, Coca-Cola, Mattel and Trader Joe’s.
Like new outdoor seating or an HVAC system, the COVID-19 Workplace Solution can now be deducted upfront at 100 percent under the new tax law.
During a time when so many companies are struggling, this one change can make a big difference.
The COVID-19 Workplace Solution
“Turing Shield’s newest solution, the COVID-19 Workplace Solution, helps businesses navigate the COVID era taxes with ease.”
There are four key reasons why the COVID-19 Workplace Solution is turning up in so many businesses and organizations.
This AI-powered technology is easy to use, affordable and aesthetically pleasing. Yet it accomplishes four tasks essential to keeping the workplace as safe as possible.
- The COVID-19 Workplace Solution launches each workday with an employee health questionnaire, based on guidelines established by the U.S. Centers for Disease Control and Prevention. Employees use their own smartphones to take the questionnaire — and a QR code is generated upon completion. Employees use this QR code to launch the Turing Shield, which looks like a tablet on a stand.
- The Turing Shield next performs an AI-automated non-contact temperature check that’s lightning fast and extremely accurate (within ± 0.5°F).
- At the same time the temperature scan is being done, the Turing Shield checks to make sure the employee is wearing a mask.
- Finally, the Turing Shield is able to launch quick and efficient contact tracing in the event an employee does test positive for the virus. This is important because it keeps employees as safe as possible and it helps protect your business from pandemic-related litigation, which is on the rise.
A Closer Look at the Tax Change
Specifically, Section 179 of the Internal Revenue Code was modified as part of the Tax Cuts and Jobs Act of 2017, which was intended as a catalyst to spur economic growth.
Criteria for qualified property includes:
- The taxpayer or its predecessor didn’t use the property at any time before acquiring it.
- The taxpayer didn’t acquire the property from a related party.
- The taxpayer didn’t acquire the property from a component member of a controlled group of corporations.
- The taxpayer’s basis of the used property is not figured in whole or in part by reference to the adjusted basis of the property in the hands of the seller or transferor.
- The taxpayer’s basis of the used property is not figured under the provision for deciding basis of property acquired from a decedent.
- The cost of the used property eligible for bonus depreciation doesn’t include the basis of property determined by reference to the basis of other property held at any time by the taxpayer (for example, in a like-kind exchange or involuntary conversion).
Non-qualified section 179 property includes:
- Electrical energy, water or sewage disposal services,
- Gas or steam through a local distribution system or
- Transportation of gas or steam by pipeline.
- any property used in a trade or business that has had floor-plan financing indebtedness if the floor-plan financing interest was taken into account under section 163(j)(1)(C).
It should be noted, too, that if section 179 does not apply to a business, IRC Section 168 (k) is also an option for taking the full expense of property as a deduction.
Disclaimer, Turing Video does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is not intended to provide — and should not be relied on for — tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Reopen and Stay Open with Confidence
The COVID-19 Workforce Solution is based on advanced technology, but it’s extremely simple to use.
Here’s a quick video on how effortlessly it all works.
This remarkable technology truly does keep the workplace as safe as possible, which is everybody’s main concern, but it also works just as hard to keep your business open and protected against pandemic-related litigation.
That is because it gives you a detailed record of every action taken to keep COVID-19 out — and it allows nearly effortless and accurate contact tracing should it be needed.
If you’d like to learn more about how the Turing COVID-19 Workplace Solution can help protect both your employees and the future of your business, contact us at firstname.lastname@example.org or by calling 866.339.4268. We’re eager to answer any questions you may have — or provide additional information about how Turing’s technology is being used in your industry specifically.