Technology and Tax Breaks

Armed with gadgetry that would make James Bond drool, Nona Swann clcked through a high-tech listing presentation for a 67-year-old potential customer. At the outset of their meeting, the customer had made it clear that he was interviewing other sales associates. As she wrapped up her pitch, Swann showed him a screen on her newly purchased iPad that featured a listing contract.

Then, she received the surprise of her life.

“I said, ‘When you’re ready to sign, you’ll sign on the iPad,’ and he said, ‘I’m ready! You obviously have the technology (know-how), and that’s what I’m going to have if you’re my agent.’ We’re closing on their house today. So the expense of buying the iPad was just covered!” says Swann, broker-owner of Swann & Associates Real Estate Inc. in Melbourne.

Swann isn’t the only one who’s discovered the pwer that technological investments can have on her real estate business, say CPAs who specialize in helping sales associates. Whith taxes due soon, it’s more important than ever to understand the breaks Uncle Sam offers, for both any tech cost you incurred in 2011 and any you may be planning in 2012.

Now Is the Time?

Should you plunk a chunk of change into the latest gadgets, even with tax incentives? Sean Haggard, a CPA with Miami-basedKaufman, Rossin & CO., offers this simple rule of thumb: “Generally, the way we advise clients is to differentiate between need and want. ‘Need’ will have a return on investment, a financial impact to the bottom line. A ‘want’ is generally not a return on your investment.”

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