NFIB

Cashing in on Your Old Computer Equipment
07/ 25/ 2002

by Tamara Holmes

When it's time to upgrade your computer system, what do you do with your old equipment? You can always throw it away, but that solution may be the worst one for everyone.

Toxic materials that are used to build your computer pose problems for the environment when they are not disposed of properly. According to the National Safety Council, more than 315 million computers will be obsolete by the year 2004. But new options for dealing with old computers are cropping up for small businesses every day.

Your equipment, while too outdated to be of use to your business, would likely do another small business more good than it would do sitting in a local landfill. And by dumping your equipment in the trash, you might be missing out on a tax break or even a new stream of revenue.

Evaluate your equipment. How outdated is it? If it's in pretty good shape and you're simply upgrading because you want to add a little more power to your own business arsenal, you should consider leasing out or selling your equipment. Small businesses that are just starting out might not have the financial resources to purchase new equipment, and your old systems might pack all of the power that they need.

If your computer is too outdated to appeal to buyers, you can still get rid of it and get a financial break for your business at the same time. By donating your computer equipment to a charity organization or educational institution, your company may be eligible for a tax break. For example, the 21st Century Classrooms Act for Private Technology Investment gives companies that donate equipment to schools a tax deduction.

Even if your computer is so outdated that no one else can use it, some of its parts can still be recycled and used in other products. You can find a listing of companies that accept computers for recycling by state at the Web site of the Electronic Industries Alliance's Consumer Education Initiative (www.eiae.org).

Smart business owners know when it's time to let go of old computer equipment. But even smarter business owners know how to milk that old equipment for all it's worth.

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