Section 179 and Software Purchasing

Section 179 and Software Purchasing

As we near the end of 2022, we know that businesses everywhere are making their final purchase decisions for the year and finalizing budgets for next year. We gathered some information on Section 179 of the IRS tax code, which allows businesses to make deductions of the full purchase price on items such as equipment or software. It is our goal to educate our newest customers and anyone who will sign by the end of the year on this tax incentive so you can take full advantage. We do recommend however, that you speak to your accountant for the specifics of your situation.

The basic requirements for Section 179 and software purchasing are that the software is purchased or financed with a specific qualifying lease or loan, that it is used in your business for income producing activity, that it has a determinable useful life, and that it is expected to last for more than one year. Our e-Emphasys ERP Software for Equipment Dealers and rental companies is utilized across the business, including in key revenue driving initiatives from aftermarket support to equipment sales and service. e-Emphasys is a future-proof platform, backed by over 250 Research and Development team members dedicated to continues enhancement and innovation for the industry. We see each customer as a lifelong partnership.

In order to elect to use the deduction, you must fill our part 1 of IRS form 4562, which you can download online.  Equipment can also be deducted under this section of the tax code. Your customers can be using this to deduct their equipment purchases as well. It’s time to make your final purchases of the year to qualify for this incentive. Schedule a demo today to learn more about our end-to-end digital transformation software for equipment dealerships.