For the 2019 tax year, the IRS depreciation deduction is once again a cool million, plus a 100% bonus first year depreciation, thanks to the Tax Cuts and Jobs Act. In other words, they’re practically begging you to make a few more business equipment purchases for some pretty killer tax savings.
So unless you’ve already spent a combined $1,000,000 this year on equipment, furniture, software, and other property for your company, there’s still time to take advantage of the significant tax benefit of buying business equipment under the Section 179 limit.
How much could your business save?
GPS Tracking Equipment
GPS Tracking Subscription
** Tip: If the initial cost is a hurdle, consider equipping half your fleet now and half after the new year to spread your Section 179 savings across two tax years.
In case you’re unfamiliar with Section 179 of the tax code…
The IRS now allows businesses to write off 100% of an equipment purchase in the year they buy it. You no longer have to spread that depreciation out over many years, writing off just a small percentage of the equipment’s price in any given tax year. Under Section 179, you can reap all of that write-off benefit this year.
GPS Tracking Hardware and Software Qualifies for the Section 179 Deduction
This means that as long as you purchase or lease a GPS vehicle tracking solution by December 31, 2019 (assuming you’re still under the $1,000,000 write-off limit), you can write off the entire amount of the software and hardware on your 2019 tax return. That includes:
- Your fleet dash cams
- Your GPS trackers for vehicles
- Your GPS trackers for trailers, containers, and other mobile assets
- Your GPS trackers for heavy equipment
- Your telematics tracking software
Lock in Your 2019 Tax Deduction Before December 31
As you can imagine, writing off 100% of a business equipment purchase such as a GPS tracking solution or dash cameras for your fleet could mean a 35% cash savings or more, depending on your company’s income tax situation.
But you’ve got to get this purchase on the books before December 31 to qualify for the 100% depreciation deduction this tax year.
If you wait until New Year’s Eve and the ball drops… you’ve dropped the ball.
All of which is our way of saying, you’re out of excuses for putting this thing off.
It’s time to start protecting your fleet with GPS tracking.