Tax Benefits for GPS Tracking Equipment 2018

28 Mar 2018

Did you know the Tax Cuts & Jobs Act passed in December provides for immediate full expensing of capital investments for the next five years? This special “bonus depreciation” applies to LiveViewGPS trailer telematics products, which typically qualify as short-lived capital investments.

Below is an overview of this key business tax provision in the new law that will impact capital investment:

Corporate Tax Rate: Reduces corporate (C Corp) tax rate from 35 percent down to 21 percent starting in 2018.  The significant reduction in corporate taxes will free up cash to enable companies to make investments in capital improvements

Capital Investment: Allows  immediate, full expensing of short-lived capital investments, such as machinery and equipment (now new or used) for five years through December 31, 2022, then phases out the provision by 20 percent annually over the next five years. This is generally referred to as “bonus depreciation,” which is available for new and used equipment under the new laws.  In prior years, “bonus depreciation” applied only to new equipment and was for 50% of the amount purchased.

LiveViewGPS products typically qualify as short-lived capital investments, so our customers will be able to take full advantage of the new tax laws. Companies should confer with their tax advisors to determine the benefits of accelerating planned capital expenditures in 2018.

Comments

comments


Comments are closed.

About Live View GPS

We specialize in real time GPS tracking systems. GPS tracking, GPS monitoring and management for vehicles, assets, equipment, property and persons. Whether your needs are consumer or commercial based, personal or business related we have a cost effective GPS tracking solution for you. Locate in real-time and on demand vehicles, people and property from any web based computer. View these locations on our systems integrated maps. Our GPS devices are the real deal, they are tested and proven, they work.