With the end of the year approaching, Panatrack has been receiving questions from a few partners and clients about the tax implications for software purchases. Thanks to the team at Enavate, things are a little easier to understand now. Enavate’s blog post sums up the key points on this useful topic. This year, the deduction is great for teams looking to add software. And as a bonus, it applies to both purchased and financed solutions! (Be sure to consult with your tax experts or CPA to confirm you fully qualify.)
The deduction limit for 2020 is set at $1,040,000 and is limited to “off-the-shelf” solutions, meaning that custom code or heavily modified software is not included in the deduction. That makes PanatrackerGP an excellent choice for this benefit. By ensuring that your purchase meets the requirements, your company can leverage this great deduction as 2020 wraps up. Below, you can see the breakdown from section179.org on what software qualifies in greater detail. In addition to the software, barcode scanning hardware can be included in this. That means that now is the perfect time to outfit your team with the latest and greatest barcoding hardware. From scanners to printers, you now have the pick of the litter. For more details on exciting new hardware options from Panatrack, have a look at our post here: https://www.panatrack.com/selectingyourscanner/
One question that has been raised regards the definition of “implementation” if companies are not ready to deploy a full roll out before the end of the year. While Panatrack is known for our easy and rapid implementations, all that is truly needed is to get the system installed and the hardware connected to your network. That can be accomplished in just a few hours! Training of your team can be postponed until your schedule allows for it. If you have questions about our implementation timeline and when your team can sign up, drop us a line here: https://www.panatrack.com/contact-us/
Given the high value of this deduction and fantastic interest rates on software financing, there has never been a better time to take control of your inventory and assets with Panatrack!