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GPS Tracking Tax Incentives

  • GPS Tracking Tax Incentives

Fleet managers are always looking for ways to save money. Integrating new technology in fleet vehicles can make operations more efficient and help businesses qualify for tax benefits. One technology getting a great deal of attention during tax season is GPS tracking equipment.

The Section 179 deduction is worth looking into if you purchase qualifying fleet management technology such as asset trackers, ELDs, and some GPS devices. Understanding specific tax codes is the ticket to maximizing savings. Invest in the right GPS tracking system, and there is a good chance you can get the U.S. federal government to pay for part of your purchase.

What is the Section 179 deduction?

Under the Section 179 deduction, business owners may write off the full purchase price of eligible equipment within the first year of purchase, including technology and devices that were purchased in full, leased, or financed. Being able to deduct the cost of vehicles, cabin equipment, and other machinery leads to significant returns once taxes are filed.

The Section 179 deduction is in place to promote relief for small businesses. Rather than splitting up write-off entries over several years, professionals can deduct the entire purchase price from their gross income within one tax year. The incentive behind this tax code is to encourage companies to continue buying new equipment so they can fulfill their goals.

What qualifies for Section 179?

There is a broad range of fleet telematics hardware and software that is eligible for the Section 179 deduction. In order to deduct a piece of equipment, you must prove that you purchased or leased an item between January 1 and December 31 of the given calendar year. Review the details below to see what types of equipment are eligible for the Section 179 deduction:

  • Machinery used by a business
  • Trucks, vans, and other vehicles of at least 6,000 pounds in weight
  • Security systems
  • Containers
  • Personal property used for business operations
  • Office furniture and equipment
  • Computers and relevant software

Section 179 deduction limits for 2021

Deduction limits surrounding Section 179 have changed in recent years. For the 2021 tax year, business owners can deduct a maximum of $1,050,000. You must buy and start to use your new assets before December 31, 2021.

Purchase GPS tracking devices with any form of payment

Small businesses can purchase fleet management equipment using any form of payment and still list deductions under Section 179. This tax incentive for companies is designed to boost the economy and allow businesses to grow with the demand for their services. Use cash, lines of credit, or a lease to buy fleet equipment, and you may deduct every penny.

How does Section 179 benefit my fleet?

Following Section 179 guidelines can help you implement much-needed changes for your fleet. If you have considered GPS tracking technology for some time, now is the perfect time to act since you can list purchases as tax deductions in full. 

The IRS is making it easy to get technological solutions for your fleet, and it does not matter whether your purchases are in new or used condition. Qualifying items may be pre-owned. As long as these investments are new to your company, you can benefit from the Section 179 deduction.

The Section 179 deduction is also excellent for fleet companies that have already purchased GPS equipment within the last year. By now, these businesses have already seen the benefits of lower insurance premiums as a consequence of their investment. Now, recent GPS upgrades allow them to see tax breaks for further savings.

Using Section 179 for GPS equipment and software

GPS tracking devices, such as ELDs, are appealing to fleet companies because they enable fleet managers to review HOS logs, monitor driver behavior, note travel stops, and see other critical data. To get the most out of your fleet tracking tax deductions, it is important to know what you will need to streamline tasks during your busiest points of the year.

Business owners can use Section 179 deductions on both hardware and software. Rand McNally Fleet offers GPS tracking devices that ride in the cabin with drivers. You might also consider purchasing our asset trackers to keep an eye on vehicles, trailers, and other pieces of property. Maintain a close watch over your fleet and equip your vehicles with technology that maximizes uptime, then list your GPS tracking purchases as tax deductions for maximum savings.

Navigation software enables drivers to get from point A to point B smoothly, so you might also consider compatible devices that display road maps, directions, and updates so your workers stay in the know. Fleet navigation software meets the criteria for the Section 179 tax deduction as well, so you can give drivers the resources they need for success and save big when tax season comes around.

Purchase GPS tracking solutions from Rand McNally Fleet

Rand McNally Fleet provides best-in-class truck navigation, tracking equipment, and fleet management software for diverse industries. Our convenient telematics devices install in seconds with no hardwiring required. Browse our full list of asset tracking equipment online or contact our sales team with questions by dialing (800) 789-6277.

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