Write-Off 100% of Your GPS Equipment Purchase Plus Realize a 35% Savings

You may be able to write off the your entire GPS tracking system purchase through the American Recovery and Reinvestment Act

Under the ARRA, the U.S. government extended the increased depreciation limits for Section 179 of the IRS tax code. This allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. This was put in place to encourage business growth in the U.S.

How Section 179 works:

When your business buys certain pieces of equipment, it typically gets to write them off a little
at a time through depreciation. In other words, if your company spends $50,000
on a vehicle, it gets to write off $10,000 each year over five years. With
Section 179, you can write off the entire amount this year.

Savings Calculator


(On amount above $500,000)


(assuming a 35% tax bracket)

Limits of Section 179 for 2011

Total amount written off in 2011 is $500,000

Total equipment purchases for the deduction in 2011 must be less than $2,000,000

The deduction begins to phase out dollar for dollar after $2,000,000.

Businesses that exceed the $500,000 deduction limit can take a bonus depreciation
of 100% on the amount that exceeds the limit up to $2,000,000. And then also take normal depreciation on the rest.

Who Qualifies for Section 179?

All businesses that purchase or finance less than $2,000,000 in business equipment
should qualify for the Section 179 Deduction. In addition, most tangible goods
qualify for the Section 179 Deduction. Also, to qualify for the Section 179 deduction, the equipment purchased must be placed into service between January 1, 2011 and December 31, 2011.

This information is only to be used as a guide to potential benefits and FieldLogix does not provide financial or tax advice. You should always consult with your accountant to determine your individual tax situation.