Uncle Sam wants you to buy enterprise software!
Yep, enterprise software (ERP) is covered under qualifying fixed assets for Section 179 Deductions. This part of the tax code allows businesses to deduct the full purchase price of equipment and/or software during the tax year it is purchased. There is no need to wait to move to that new ERP system when good old Uncle Sam is going to let you deduct the full price from your gross income. Even better, you can lease the enterprise software as well and still get the deduction. The 2016 limit is $500,000 and the equipment/software must be financed/purchased and put into service by 12/31/16.
We recommend that when you purchase a new enterprise software ERP system using the 179 deduction, that you purchase Dynamics NAV. Dynamics NAV Fixed Asset functionality is all set to handle a 179 asset purchase. What could be easier.
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