Internal Revenue Code Section 179 May Help Offset the Cost of a HandyTrac System
When property teams evaluate security upgrades, the focus is usually on risk reduction, accountability, and operational efficiency. But for many organizations, how and when an upgrade is made can also impact the financial picture.
Why Section 179 Comes Up in Security Conversations
Section 179 exists to encourage businesses to invest in equipment that supports daily operations. Instead of depreciating qualifying equipment over several years, eligible businesses may be able to deduct the cost in the same year as it becomes operational.
For property teams investing in systems that improve access control and accountability, this can be an important consideration when planning capital expenditures.
* This information is provided for general awareness only and is not tax advice.
Where a Key Management System Fits In
Modern key management systems are no longer simple cabinets. They are installed, technology-driven tools that support controlled access, audit trails, and compliance requirements.
Because systems like HandyTrac are physical equipment installed at a business location, they may be discussed as part of Internal Revenue Code Section 179 planning depending on how the purchase is structured, installed, and recorded on the company’s books. Eligibility ultimately depends on IRS rules and the organization’s specific tax situation.
Timing Matters More Than Many Teams Realize
One of the most common misconceptions about Section 179 is that it only matters at the end of the year. In reality, timing affects eligibility in several ways.
The system must be installed and in use during the tax year. The business must have taxable income to apply the deduction. Annual limits and thresholds can change from year to year.
For this reason, many property teams start conversations early and coordinate with their tax advisors before finalizing security upgrades.
Who Often Asks About Section 179
While eligibility varies, Section 179 is frequently discussed by:
· Multifamily property management companies
· Senior living and student housing operators
· Commercial real estate owners
· Organizations making technology or security investments
· Businesses planning capital improvements with taxable income
Tax-exempt and nonprofit organizations typically do not qualify.
Section 179 Is a Consideration, Not the Goal
For most HandyTrac customers, the decision to upgrade key management is driven by operational needs for reducing liability, improving accountability, creating clear audit trails, and supporting compliance and resident safety.
Section 179 is simply an added layer that may help some organizations align those operational improvements with financial planning goals.
A Simple Next Step
If your organization is planning a security or key control upgrade, it may be worth asking your tax advisor:
1. Does this type of equipment qualify under Section 179 for our business?
2. Should this purchase be expensed or depreciated?
3. Does our taxable income support the deduction this year?
Those answers help teams make informed decisions with confidence.
HandyTrac does not provide tax or legal advice. Section 179 of eligibility depends on individual tax circumstances and IRS rules. Always consult a qualified tax professional to determine qualifications and benefits. For more information about the Internal Revenue Code Section 179, please reference Section179.org for more information.
