Almost every business equipment and software purchase your company makes (up to $1,080,000, or your company’s net income, whichever is smaller) qualifies for a Section 179 deduction. That means you can deduct what you paid in 2022 for equipment ranging from vehicles, computers, heavy equipment, and—you guessed it—GPS tracking devices.
This section of the tax code is particularly valuable for fleet businesses, who typically have to budget in high-dollar expenses for adding and replacing new equipment. Section 179 lets you deduct the full cost of the item in the year it was purchased instead of streaming the deduction over a series of years through depreciation. That can really help reduce your taxable income. And with fleet management software like GPS Trackit, you’ll see cost savings both in the form of a Section 179 deduction and from reduced fuel taxes, running costs, and insurance expenses.
It’s a win all around.
What Qualifies for a Section 179 Deduction in the 2022 Tax Year?
Be sure to check with your tax professional for specific advice for your situation, but the following categories of equipment generally qualify for a Section 179 deduction:
-Machines and other heavy equipment
-Computers and off-the-shelf software
-Office equipment and furniture
-Tangible property used by a business (maintenance equipment, accessories, etc.)
To find out how much you could potentially save, try this free online Section 179 calculator.
Save Money on Fuel Taxes, Too!
The fuel cost savings fleets experience with GPS tracking are well documented. But, what about fuel tax savings? With the accuracy of GPS state mileage data, you will never pay more in fuel taxes than you really owe again.
Instead of estimating your fuel tax liability, compute it with precision, and save yourself time and money. GPS Trackit’s ProMiles® Integration lets you create IFTA-compliant reports while minimizing the potential for recording errors. Mile-to-kilometer and gallon-to-liter conversions are processed automatically, ensuring fuel reporting accuracy.
IFTA reporting errors don’t just put your compliance status in jeopardy—they can mean big losses for your business in the form of fuel tax costs.