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GPS / Telematics

Little-Known IRS Tax Break Makes Investing in GPS Tracking Technology More Affordable

November 21, 2007

SALISBURY, MD – Many business owners looking to purchase a GPS tracking system to improve the performance of their mobile workforce delay their decision, assuming that the costs of implementing it are too prohibitive. However, some excellent opportunities exist to help business owners overcome this hurdle, according to Navtrak.

For example, one of most beneficial yet least known methods is the IRS Section 179 tax deduction, which allows companies to expense the cost of tangible property in the same year it is purchased, rather than spread it out over multiple years.

Specifically, IRS Section 179 allows a sole proprietor, partnership, or corporation to fully expense tangible property in the year it is purchased. And tax-law changes over the past few years have made this option much more appealing by dramatically increasing the amount that can be written off immediately (up to $112,000).

This special tax incentive, designed specifically for growing organizations, represents a fiscally sound method of capitalizing on new technologies, such as GPS tracking. The Section 179 deduction is not automatic, so to take advantage of it companies must first elect to do so. Navtrak advises that companies talk to their accountant to explore available options.

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