During the month of November, a number of accountants will be getting a telephone call or an e-mail from clients all asking the same question. “What is the little-known tax break that makes investing In GPS-tracking technology more affordable than ever?” Be careful what you say if asked because that inquiring client already has the answer.

And why all of the sudden are so many calls being made and e-mails being sent out? Simple: A manufacturer of a particular GPS-tracking system designed for businesses with mobile work forces issued a press release that announces in the title the existence of the tax break. And the release’s subtitle, “Special tax deduction offers fleet owners a unique opportunity to invest in GPS tracking software in 2007,” seems to imply that the purchase must me made before the end of the year to take advantage of the tax break.

Yes, the press release details and identifies the “little-known tax break.” It reads in part as follows: “Section 179 allows a sole proprietor, partnership or corporation to fully expense tangible property in the year it is purchased. And tax-law changes over the past few years have made this option much more appealing by dramatically increasing the amount that can be written off immediately (up to $112,000) {Is $125,000 for 2007 years--Ed.}.”

The release then explains, “The Section 179 deduction is not automatic, so to take advantage of it you must first elect to do so. Talk to your accountant to explore your options, or download our free article on the IRS Section 179 deduction to learn more.” That call to action is why I expect some clients to reach out to their accountants.

If you don’t get a call or an e-mail in the next month or so, you aren’t necessarily off the hook, because I expect to see a slew of press releases and ads in 2008 on additional “little know tax breaks,” as other manufacturers (and, perhaps some other accounting firms) see the marketing benefits of adopting such approach.


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