Section 179: Get the Software You Need

September 27, 2016

section179-banner-headerHave you heard about the Section 179 Deduction? It allows businesses to expense or deduct purchases for eligible machinery, equipment, and software in the year of purchase.

By opting to not use the deduction, companies have to amortize the write-off over the useful life of the purchased asset. However, using the Section 179 Deduction decreases your Federal Income Tax this year, saving your business money!


2016 Deduction Limit = $500,000

You read that correctly: a $500,000 deduction on off-the-shelf software. That’s right, you now have another great reason to invest in ERP software today!

Distribution One’s innovative ERP-ONE software is complete, comprehensive, and connected. By taking advantage of this amazing deduction now, you will streamline your productivity, increase your profitability, and drive your competitive advantage in 2017 and beyond.

As with all good things, this deduction only lasts for a limited time. Your ERP-ONE software must be financed/purchased and put into service by the end of the day, 12/31/2016.


The additional benefits of Section 179 include:

2016 Spending Cap on equipment purchases = $2,000,000 
This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This could be a great option for customers choosing On-Premise ERP-ONE deployment who need to invest in servers. We recommend that you consult your accountant.

Bonus Depreciation = 50%
Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached and is available for new equipment only.

Material goods that generally qualify for the Section 179 Deduction
Please keep in mind that to qualify for the Section 179 Deduction, the equipment listed below must be purchased and put into use between January 1 and December 31 of the tax year you are claiming.

  • Equipment (machines, etc) purchased for business use
  • Tangible personal property used in business
  • Business Vehicles with a gross vehicle weight in excess of 6,000 lbs
  • Computers
  • Computer “Off-the-Shelf” Software
  • Office Furniture
  • Office Equipment
  • Property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment)
  • Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes).

 

The above is an overall, “simplified” view of the Section 179 Deduction for 2016. For more details on limits and qualifying equipment, as well as Section 179 Qualified Financing, please read this entire website carefully.

Act now to maximize your tax savings!

 

It’s never been a better time to invest in ERP-ONE software. Please contact us with any questions you have and to discuss how you can make the Section 179 Deduction work for you this tax year.

Please consult your tax advisor or accountant for additional information. Distribution One is not a tax advisor nor tax consultant.

Search
Generic filters
Exact matches only

Highlighting distributor successes

Customers share their ROI achievements. Click each testimonial to read the full case study.

Empire Bolt logo

Empire Bolt & Screw

“Out of the gate, our first cost savings occurred in accounting. What was previously a full-time job went down to just 2 hours a day. This change alone saved us $40,000 in year-over-year labor costs.”

Patlin logo

Patlin Inc.

“Distribution One has allowed us to deliver 30% more orders without having to increase our labor force.”

Nut Place logo

The Nut Place

“ERP-ONE actually helps our business be more productive. We operate more efficiently because our software performs like a world-class product. And that’s not marketing hype. We trust in its reliability. It is one of the best decisions our company made.”

Colorado Industrial Packaging logo

Colorado Industrial Packaging

“ERP-ONE tracks product costs and sales margins for us… that benefit alone has added 4% to our bottom line after the first year of implementation and has more than paid for the cost of ERP-ONE.”

A-Jax logo

A-Jax Fasteners and Tools

“Enhanced productivity, lower operational costs, higher service levels, and stronger customer relationships—it’s all been attained through our ability to provide continuous real-time data generated through the myriad of programs within ERP-ONE.”

VLC Distribution logo

VLC Distribution

“Having spent 30 years on the operations side of distribution using SAP and AS400 software, I have not encountered a better system than ERP-ONE. The efficiencies and expandability has allowed us to improve our sales by $500,000 per employee in a year.”

On Time Supply logo

On Time Supply

“We had immediate visibility into which sales representatives were performing and which product lines were providing the best return for our business.”

Cathy's Concepts logo

Cathy’s Concepts

“The ability to manage orders online has created greater efficiency in their business and has delivered more flexibility in modifying and tracking orders. Changes to an order instantly cascade all the way through the terminals and the processing stations cutting production time by at least 15%.”

intercorp logo

Intercorp

“I’m excited about the future. We processed hundreds of orders in the first week and project our webstore will be handling over 10,000 orders per year.”

Take an ERP-ONE+ Tour