Have 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.
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.
Every single customer has unlocked transformational improvements using Distribution One’s ERP-ONE software solution. Now it’s your turn!
“Distribution One has allowed us to deliver 30% more orders without having to increase our labor force.”
“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.”
The Nut Place
“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.”
Colorado Industrial Packaging
“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.”
-President & CEO
A-Jax Fasteners and Tools
“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.”
-Chief Operating Officer
“Working with you and the rest of your staff has been an excellent experience. From the initial training sessions at our facility to the ongoing tweaking and improvements we continue to make, it has been a pleasure doing business with such professional, and yet personable, individuals.”
“We had immediate visibility into which sales representatives were performing and which product lines were providing the best return for our business.”
On Time Supply
“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%.”