Yes, You Can Deduct GPS Fleet Tracking Under Section 179
Kill 2 Birds with One Stone
Are you still on the fence about signing up for GPS fleet tracking? Or thinking of expanding your tracking capabilities to your other vehicles and assets?
You probably already know GPS fleet tracking can benefit your operations in plenty of ways—including quantifiable cost savings and by helping your business run more efficiently every day. But thanks to Section 179 of the IRS Code, you have another great reason to sign up before the end of the year.
When you apply the 179 deductions to your GPS tracking solution, you’ll kill two birds with one stone: Set your business up for greater success in 2022—and take advantage of an excellent tax deduction to boot!
Yes, Section 179 is Just as Awesome in 2021
The rule is pretty much the same in 2021 as it was in 2020. Businesses can still deduct the full purchase price of qualifying equipment bought or leased during calendar year 2021. The only notable difference is that this year the maximum equipment purchase price that qualifies for the 100% first-year write-off increased from $1,040,000 to $1,050,000.
What this Deduction Could Mean for Your Business
Let’s say your company has a fleet of 12 service vehicles. Here’s what you’ll need to gain real-time monitoring and data analysis of your fleet—and all the operational benefits that come from it:
- 12 plug-and-play GPS tracking units, at $75 per device (one-time purchase)
- 12 “Pro” software licenses, at $25 per month per vehicle
For the trackers, your out-of-pocket costs would be $900 to equip your fleet ($75 x 12). But…
With the Section 179 deduction, that purchase will look like this:
And here’s where it can get very interesting.
When you sign up for ClearPathGPS, you won’t have to commit to any long-term agreement. You can pay for our service monthly and cancel anytime without penalty.
But if you wanted to take advantage of this Section 179 deduction for your ongoing GPS service, you could sign up for, say, two years—and deduct that total amount from your business income this year.
Here’s what that might look like:
And keep in mind: This applies even for equipment, including software, that your business obtains with financing. In other words, you can deduct 100% of the price of a two-year software license from your 2021 income even if you lay out only a portion of the cash for it this year.
But Don’t Take Our Word for It
We didn’t arrive at these estimates by guessing. Those calculations above come directly from the IRS Section 179 calculator. Check it out for yourself. Plugin whatever numbers apply to your business to see how big the tax breaks will be for you.
And when we say don’t take our word for it, we also mean that you’ll need to consult with your accountants before making any business decisions based on their possible tax implications. After all, we’re an award-winning GPS provider—not an accounting firm.
You Still Need the Right GPS Fleet Tracking Partner
Just remember, when it comes to signing up for a fleet tracking solution, Section 179 should be the icing on the cake. The tax breaks can be great, but you first need to know you’re signing up for the right service. That means making sure your GPS provider:
- Receives outstanding customer reviews on sites like Trustpilot.
- Offers flexible GPS tracking plans and doesn’t demand a multi-year contract.
- Integrates with other workflow apps, like Fleetio and ServiceTitan, to make your staff even more productive and efficient.
- Provides dozens of real-world customer success stories to prove that it truly helps businesses save money and grow.
Act Soon to Take Advantage of the 179 Deduction
We know the last thing any business wants to think about is taxes. But having a big bonus write-off—combined with the many benefits of the right GPS fleet tracking system—can make your 2021 tax preparation a lot less frustrating.
You’ve got to move quickly, though. You can claim the 100% deduction from this year’s gross income only if you sign up by December 31, 2021. But don’t worry—we’ve made the signup and install process easy.
At ClearPathGPS, we are focused on helping our customers improve their operations and bottomline. Our top-rated GPS fleet tracking solutions provide real-time data insights and tools needed to more effectively manage the vehicles, people, and assets businesses send into the field everyday. Can ClearPathGPS help your operations get better results? Let’s find out – request a demo or contact us today!