Tax Benefits for GPS Tracking Equipment 2018
28 Mar 2018Did 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.
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