IRS Sect 179 Allows Tax Write-Off For Your GPS Tracking System Purchase

Write-Off 100% Of Your GPS Tracking System Purchase Plus Realize A 35% Savings.

Now may be the perfect time to invest in a GPS tracking system since the federal government will essentially pay for a large portion of it. Thanks to the extension and increased deductions with IRS Section 179, businesses can write off up to $139,000 for equipment purchased during 2012.

Take advantage of IRS Section 179 by purchasing your GPS tracking equipment before the end of the year!

You may be able to write off your entire GPS tracking system purchase through the Jobs Act. Under the act, the U.S. government offers new depreciation limits for Section 179 of the IRS tax code. This allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. This was put in place to encourage business growth in the U.S.

How Section 179 Works:

When your business buys certain pieces of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a vehicle, it gets to write off $10,000 each year over five years. With Section 179, you can write off the entire amount this year.

Limits of Section 179 for 2012

Total amount eligible to be written off in 2012 is $139,000.

Total equipment purchases for the deduction in 2012 must be less than $560,000

Bonus depreciation of 50% (above $139,000) on qualified assets placed on service during 2012.

Bonus depreciation can only be taken on new equipment purchases (not used and not software)

Businesses that exceed the $139,000 deduction limit can take a bonus depreciation of 50% on the amount that exceeds the limit. And then also take normal depreciation on the rest.

Who Qualifies for Section 179?

All businesses that purchase or finance less than $560,000 in business equipment should qualify for the Section 179 Deduction. In addition, most tangible goods qualify for the Section 179 Deduction. Also, to qualify for the Section 179 deduction, the equipment purchased must be placed into service between January 1, 2012 and December 31, 2012.  

This information is only to be used as a guide to potential benefits and FieldLogix does not provide financial or tax advice. You should always consult with your accountant to determine your individual tax situation.

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