{"id":21269,"date":"2018-05-09T09:00:31","date_gmt":"2018-05-09T13:00:31","guid":{"rendered":"https:\/\/www.gofleet.com\/?p=21269"},"modified":"2020-08-04T13:46:09","modified_gmt":"2020-08-04T13:46:09","slug":"tax-benefits-gps-fleet-tracking1","status":"publish","type":"post","link":"https:\/\/www.gofleet.com\/tax-benefits-gps-fleet-tracking1\/","title":{"rendered":"Tax Benefits & GPS Fleet Tracking | Save on Taxes!"},"content":{"rendered":"
One of the most well-known quotes about taxes is \u201cin this world, nothing can be said to be certain, except death and taxes.\u201d Even in 1783, people realized that taxes are a constant! Interestingly, tax benefits & GPS fleet tracking go hand-in-hand.<\/p>\n
What is the relationship between tax benefits & GPS for fleets<\/a>? They both relate to fleet management. Part of fleet management includes maximizing tax benefits while reducing tax costs.<\/p>\n Three examples of tax benefits & GPS fleet tracking include:<\/p>\n Section 179 is a tax opportunity for GPS tracking programs. Here\u2019s a quick tax review.<\/p>\n The IRS allows for \u201cdeprecation\u201d. In other words, depreciation accounts for an asset\u2019s wear and tear. As a result, businesses are allowed to deduct a percentage of assets as a tax credit.<\/p>\n Section 179 provides an opportunity between tax benefits & GPS fleet tracking<\/a>. With this section, businesses can elect to deduct $2.5 million of equipment purchase in 2018. Hence, fleets can include out-of-the-box programs like fleet tracking tools in this exemption.<\/p>\n Think about a $100,000 investment and a 30% tax rate. Normally, only a small portion of $100,000 is allowed to be deducted. However, with Section 179, fleets can get a $30,000 tax credit by deducting the full $100,000 at the 30% rate. Some provinces and states have carbon taxes.<\/p>\n Carbon tax means that the government collects tax money for each metric ton of greenhouse emission. For example, in Alberta, the government is collecting $10\/ metric ton of 2018 emissions. That rate is expected to increase to $50\/ metric ton by 2022.<\/p>\n Within fleet businesses, operating company vehicles is one of the biggest contributors to gas emissions. Some of the common causes include:<\/p>\n <\/p>\n Many fleets have policies and programs to counter gas emissions. For example, some fleets have a zero-idling policy. Zero-idling means that drivers are not allowed to idle at all. Fleet managers can look at watchdog reports to flag rule breakers.<\/p>\n Beyond no-idling, some other ideas include remapping driver routes, regular vehicle maintenance, and driver training.<\/p>\n S. 179, discussed earlier in this article, talks about equipment purchase. What about tax benefits after the equipment purchase? Two examples of tax benefits earned during fleet operations include business-use expenses and PTO.<\/p>\n When vehicles are used for business, it is classified as a business expense and is tax deductible. One of the biggest challenges, however, is administering the tax.<\/p>\n \u201cWhen you apply for tax credits, you have to be very careful to submit the right numbers. We used to double check our files for accuracy,\u201d said a fleet administrator. \u201cNowadays, most fleets have a tracker to record business use miles. We can trust our tracker to get the right numbers.\u201d<\/p>\n <\/p>\n PTO, or power take off, is another tax benefit. Some states and provinces allow businesses to get a rebate when vehicles use PTO. As a result, PTO equipment such as snow plows, cleaners, and construction vehicles track their PTO hours.<\/p>\n One of the most well-known quotes about taxes is \u201cin this world, nothing can be said to be certain, except death and taxes.\u201d Even in 1783, people realized that taxes are a constant! Interestingly, tax benefits & GPS fleet tracking go hand-in-hand. What is the relationship between tax benefits & GPS for fleets? They both […]<\/p>\n","protected":false},"author":5,"featured_media":21279,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,23],"tags":[],"class_list":["post-21269","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-increase-savings-gps-tracking"],"yoast_head":"\n\n
Section 179 (US)<\/h2>\n
Normal Asset Tax Treatment<\/h3>\n
What is Section 179?<\/h3>\n
How does the math work?<\/h3>\n
\n<\/p>\nCarbon Taxes (Some states & provinces)<\/h2>\n
What is carbon tax?<\/h3>\n
How do fleets cause emission?<\/h3>\n
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How can fleets reduce emission?<\/h3>\n
Business Tax Benefits (Some states & provinces)<\/h2>\n
Business-Use Expense<\/h3>\n
PTO<\/h3>\n
Interested in tax benefits & GPS fleet tracking? Ask<\/a> a GoFleet fleet consultant.<\/h3>\n
Links<\/h5>\n
Wood Business: The impact of a federal carbon tax on Canadian businesses<\/a><\/h5>\n
Section 179: Section 179 Deduction<\/a><\/h5>\n","protected":false},"excerpt":{"rendered":"