Cut Taxes with Law Firm Equipment Purchases
- Pathfinding Consultants
- May 20
- 5 min read
It's not easy to run a law business. Every dollar counts when you have to take care of client cases, follow the rules, and keep your business profitable. Did you know that smartly buying equipment can help a law company save a lot of money on taxes? Law companies can lower their taxable income and improve their operations at the same time by taking advantage of tax breaks like the Section 179 deduction. We'll explain in a way that's easy to understand how buying equipment for your law company can help you save money on taxes, work more efficiently, and grow your business.
Whether you’re a solo practitioner or managing a multi-partner firm, this guide will show you how to make your equipment investments work harder for your bottom line.
Why Equipment Purchases Matter for Law Firms
Law firms rely on tools and technology to stay competitive. From high-speed scanners to advanced case management software, the right law firm equipment can streamline workflows, impress clients, and improve your team’s productivity. But here’s the kicker: these purchases aren’t just operational upgrades—they’re also opportunities for law firm tax savings.
Businesses are encouraged to buy tools by the IRS through tax breaks like the Section 179 deduction. This means that law companies can deduct the full cost of qualifying equipment when they buy it, instead of having to spread the cost out over several years. This could help you save money on taxes right away, giving you more cash to spend on other things, like adding staff or advertising your practice.
What Is the Section 179 Deduction?
The Section 179 deduction is a part of the tax code that lets companies, like law firms, deduct the full price of qualifying software and hardware in the year they are bought, up to a certain limit. In 2025, the most you can deduct is $1,280,000, and after that, you'll no longer be able to claim anything until you spend $3,200,000 on equipment. This makes it a powerful tool for lawyers who want to lower their taxable income and plan their taxes.
Here’s what qualifies under Section 179 for law firms:
Tangible personal property: Computers, printers, scanners, and office furniture.
Software: Case management systems, billing software, or document management tools.
Vehicles: Certain business-use vehicles (with weight restrictions).
Improvements: Upgrades to your office, like HVAC systems or security equipment.
By strategically timing your law firm equipment purchases, you can maximize your Section 179 deduction and lower your tax bill significantly.
How Equipment Purchases Lead to Tax Savings
Let's look at how tax breaks for law firms work when they buy tools. When you buy certain types of tools, you can deduct the cost of those items from your taxable income. This lowers the amount of tax you have to pay. Say your company spends $50,000 on new computers and software. If you pay 30% of that amount in taxes, you could save $15,000 by using the Section 179 deduction.
Here’s a quick example in numbers:
Scenario | Without Section 179 | With Section 179 |
Taxable Income | $200,000 | $200,000 |
Equipment Purchase | $50,000 | $50,000 |
Deduction Claimed | $0 | $50,000 |
Adjusted Taxable Income | $200,000 | $150,000 |
Tax at 30% | $60,000 | $45,000 |
Tax Savings | $0 | $15,000 |
This is just one way tax planning for lawyers can make a difference. By working with a tax professional, you can ensure your purchases align with IRS rules and maximize your savings.
Bonus Depreciation: Another Tax-Saving Tool
Aside from the Section 179 deduction, law companies can also use bonus depreciation. You can deduct 60% of the cost of qualifying equipment that costs more than the Section 179 cap or doesn't qualify for it in 2025 if you use bonus depreciation. This is especially helpful for bigger law companies that are spending a lot of money on expensive equipment, like updating their servers or doing major office renovations.
For example, if you spend $200,000 on equipment and claim the Section 179 deduction for $100,000, you could use bonus depreciation to deduct an additional $60,000 (60% of the remaining $100,000). This layered approach can amplify your law firm tax savings.
Choosing the Right Equipment for Your Law Firm
It's important to make a smart choice because not all sales of equipment can be deducted from your taxes. These pieces of law business equipment can help you save money on taxes and work more efficiently:
Computers and Laptops: Upgrade your team’s hardware to improve speed and security.
Document Scanners: Go paperless with high-speed scanners for client files.
Case Management Software: Streamline workflows with tools like Clio or MyCase.
Office Furniture: Invest in ergonomic chairs and desks for a professional, comfortable workspace.
Security Systems: Protect client data with cameras, alarms, or cybersecurity software.
Before making a purchase, ask yourself:
Does this equipment qualify for the Section 179 deduction or bonus depreciation?
Will it improve my firm’s efficiency or client experience?
Can I afford the upfront cost to realize the tax savings?
By aligning your purchases with both operational needs and tax incentives, you can achieve law firm tax savings while setting your practice up for long-term success.
Timing Your Purchases for Maximum Savings
When lawyers plan their taxes, timing is very important. If you want to get the Section 179 deduction or bonus depreciation, you must have bought and "placed in service" (i.e., used) your tools by December 31 of the tax year. This is why the end of the year is a popular time for law firms to buy new tools.
However, don’t rush into purchases without a plan. Work with a tax consultant to:
Review your firm’s financials and projected taxable income.
Identify equipment needs that align with your budget and tax goals.
Ensure compliance with IRS rules to avoid disallowed deductions.
By planning ahead, you can make informed decisions that maximize law firm tax savings without straining your cash flow.
Common Mistakes to Avoid
While equipment purchases can lead to significant law firm tax savings, there are pitfalls to avoid:
Buying Unnecessary Equipment: Don't buy things just to get a tax break. Make sure the tools is useful for the business.
Missing Deadlines: Equipment must be in use by year-end to qualify for deductions.
Ignoring Limits: The Section 179 deduction has a cap, and deductions can’t exceed your taxable income.
Skipping Professional Advice: Tax laws are complex. A consultant can help you navigate rules and optimize savings.
Avoiding these mistakes ensures your tax planning for lawyers is both effective and compliant.
Why Law Firms Should Act Now
Since tax season is coming up soon, now is a great time to look into how buying equipment for your law business can help you pay less in taxes. Bonus depreciation and the Section 179 deduction are strong tools, but you need to plan carefully to get the most out of them. You can save thousands of dollars and set up your practice for growth by buying tools that make your business more efficient and is eligible for tax breaks.
To get to the next level, what tools does your company need? Are you ready to use those purchases to save money on taxes for your law firm? Don't wait until the last minute to make plans.
How Pathfinding Consultants Can Help
When you work with Pathfinding Consultants, we help law firms like yours get the most out of tax-saving methods. The way we do our tax consulting, bookkeeping, and business strategy is based on what law companies need. We can help you with the Section 179 deduction, making your tax planning for lawyers more effective, or organizing your business's finances.
Here’s how we can support your firm:
Tax Preparation and Planning: We’ll ensure your equipment purchases qualify for maximum deductions while staying compliant with IRS rules.
Bookkeeping Services: Keep your financials organized to track expenses and deductions effortlessly.
Business Strategies: Get customized advice to align equipment investments with your firm’s growth goals.
Payroll and Insurance Solutions: Simplify your operations with our comprehensive services.
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