Now First – The Disclaimer: We aren’t tax experts – We help Personal Injury Law Firm Owners grow and scale with the inside scoops on legal marketing and management strategies. However…
This is an important scoop that can help your bottom line, so we wanted to make sure you were informed in time to take advantage of the opportunity.
Section 179 of the US TAX Code is a HUGE opportunity for Law Firm Owners – so talk with your CPA to get the details on how to leverage this to your firm’s advantage.
Just to be clear: This is a blog to help you out – and keep you informed.
It is not official tax advice, so meet with your CPA and get the details from them.
How Section 179 will help Personal Injury Law Firms: In a nutshell, this tax provision allows you to deduct up to a little over a million dollars for 2022 firm purchases such as office equipment like computers, printers, phone systems, furniture, software, case management systems, and the likes.
It even covers specific types of vehicles.
The only catch is that you need to make the purchases and have it in use by December 31, 2022, in order to claim it on this year’s returns. And purchase does not mean paid for in full.
If you have financed the purchases and they meet the other criteria, they should still be covered!
Now is the time to Trash Those Old Law Firm Computers, update those outdated phone systems and purchase additional laptops, monitors, software, or other equipment that will help your law firm and your staff stay as current, effective, and efficient as possible.
Make Your Staff More Productive: If you want to maximize your employees’ productivity, then make sure you are providing them with the best tools and equipment to get the work done.
Now is the time to take inventory of all your law firm computers and replace those that are over 3 years old. If you are able to purchase them and have them in operation by December 31, 2022 – even if you are financing the purchase – you should be able to take advantage of IRS Section 179 deductions for this equipment as well as other office equipment or software, and even vehicles purchased before the end 2022.
If you have employees with back problems, now might be the time to purchase the ergonomic office chairs or standing desks that will allow them to work more comfortably.
Put yourself in your staff’s shoes, and to the extent it is feasible, identify ways that you could improve their working environment.
Investing in your team’s break room, adding a workout area, purchasing a filtered water cooler, an ice machine, or a few Keurig machines for coffee and lattes; There are many ways that you can show your team that you genuinely care about their health, welfare, comfort, and needs. These IRS deductions will make those purchases a bit easier on your wallet.
Keep Your Firm Ahead of the Curve: If you’ve been putting off needed updates, then these deductions may be the incentive you need to get the ball rolling.
Think updated systems and automation – phone systems, nurturing campaigns via text and email – applications to help you get more 5-star reviews….
Now is the time to identify key purchases you can make before the year’s end to help your firm move forward and cash in on the Section 179 benefits.
If you’ve always wanted a company vehicle to wrap with your firm’s logo and your smiling face, this might be your golden opportunity to get one. Then create an entire marketing strategy that takes full advantage of this vehicle to bolster your firm’s brand and visibility in your market.
MORE TAX BREAKS for PERSONAL INJURY LAW FIRMS – READ ON….
If you have had a particularly successful 2022 with solid cash flow, you should make sure you meet with your CPA to determine any additional deductions, such as Prepaid marketing expenses and such.
Take time today to strategically think about how you can best take advantage of these tax breaks for you and your law firm. Make an appointment with your CPA so you have a clear understanding of how Section 179 works and what purchases you can make before the end of the year that will help you charge into 2023 better equipped to take your law firm to the next level.
*****And if you want to learn more of the latest Strategies Law Firm Owners should be leveraging right now, then check out PILMMA’s Grow Your Law Firm Podcast
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*** If you want to gain a deeper understanding of how to scale and grow your law firm, then set up a time to talk with PILMMA’s founder, Ken Hardison – He’s built and sold two law firms and is helping law firm owners all across the country build and scale exceptional law firms. Schedule your FREE 35-minute Strategy Session with Ken!