Tax Advantage: Section 179

Check with your CPA and ask if your GPS Fleet equipment purchase qualifies your business for a Section 179 tax deduction. Section 179 allows you to deduct from your taxable income, the full amount of equipment purchases (up to $250,000.00) for 2008. The equipment purchased must be installed during the calendar year from January 1, 2008 to Dec. 31, 2008.

For example, a $10,000 purchase of equipment would ultimately cost your business $6,500.00, assuming you had taxable income to deduct and were in the 35% tax bracket.

Equipment Cost: $10,000.00
Total First Year Deduction: $10,000.00
Cash Savings on your Equipment Purchase: $3,500.00

Actual Lowered Equipment Cost: $6,500.00

Contact your CPA or tax professional and see if your purchase will qualify for the Section 179 deduction.