Section 179 Deductions Calculator

Calculator

As detailed here, Section 179 of the US IRS tax code now allows you to deduct the full purchase price of software you license in 2011 rather than depreciate it over multiple years*. To give you an estimate of how much money you can save, here's a Section 179 Deduction Calculator to make computing Section 179 deductions simple.

Simply input the Cost of Software and Effective Tax Rate below, and click on ‘Calculate’:

Cost of Software:
Effective Tax Rate: %
 
Section 179 Deduction:
50% Bonus Depreciation Deduction
(on any remaining amount above $500,000):
 
Normal First Year Depreciation:
 
Total First Year Deduction:
 
Cash Savings on Your Purchase:
 
Net Cash Outflow for Your Software Purchase:
 

The calculator provides a potential tax scenario based on typical assumptions that may not apply to your business. This page and calculator are not tax advice. The indicated tax treatment applies only to transactions deemed to reflect a purchase of the software or a capitalized lease purchase transaction. Please consult your tax advisor to determine the tax ramifications of acquiring software for your business.

What is Section 179?

Tax code Section 179 allows companies to deduct the full purchase price (up to $500K) for software purchased before December 31, 2011.

What Software Qualifies?

Any "Off-the-Shelf" computer software - software that isn't custom designed and is available to the general public - qualifies for Section 179 Deduction in the year that you put the software into service.

What's the Fine Print?

For basic eligibility, the software must meet all of the following general specifications:

  1. The software must be financed (only specific type leases or loans qualify), or must be purchased outright by you.
  2. The software must be used in your business or income-producing activity.
  3. The software must have a determinable useful life.
  4. The software must be expected to last more than one year.

In addition, these three specific stipulations must be met:

  1. The software must be readily available for purchase by the general public.
  2. The software must be subject to a non-exclusive license.
  3. The software must not have been substantially modified.

Call +1 (888) 243-4329 or +1 (919) 379-3397 to speak with a GFI representative, contact an authorized GFI Partner or click here to make your qualifying GFI Software purchase today!

Disclaimer:
PLEASE CHECK WITH YOUR TAX ADVISOR FOR THE TAX SAVINGS APPLICABLE TO YOUR SPECIFIC SITUATION both in terms of eligibility and amount of savings. The information provided here is based on our understanding of Section 179 of the IRS Tax Code; however, the accuracy is not guaranteed. GFI Software and Section179.org and its owners, affiliates, suppliers, and partners are not tax advisors, and this site is not intended to offer any tax advice. Please consult with your qualified professional concerning your specific tax situation.