If you’re still on the fence about installing GPS trackers on your company’s vehicles and other assets, the IRS is giving you one more reason to pull the trigger. But you’ve got to hurry.
For the 2018 tax year, the IRS has boosted the depreciation deduction on business equipment purchases by nearly 100%—from $510,000 in 2017 to a cool million in 2018. In other words, they’re practically begging you to make a few more business equipment purchases before the year ends.
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.
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, 2018 (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 2018 tax return. That includes:
- 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 2018 Tax Deduction Before December 31
As you can imagine, writing off 100% of a business equipment purchase such as a GPS tracking solution could drop the effective cost of that equipment by 35% 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.