Quick: Think of something scarier than navigating and understanding the tax code! Okay. Are you done? If your top three looks like ours—which are navigating and understanding the tax code, giant spiders, and regular-sized spiders—then we’ve got good news for you! Here’s a hint: it comes in the form of a business software tax deduction.

Epicor ERP Qualifies For A Business Software Tax Deduction

One of the things we’re not afraid of is finding ways to make our ERP systems affordable enough for any company. IRS Section 179 is one of the ways we do this: It covers all the software that you bought for your company in a tax year. It’s right there on line 5 of Eligible Property. That means you can deduct the full purchase or leasing price directly from your gross income. This was implemented by the U.S. Government to encourage businesses to buy equipment from other businesses, while investing in themselves at the same time. It’s a fantastic reason and a serious incentive to upgrading your ERP system.

an image of an office worker filling out forms to collect his company's Business Software Tax Deduction.

How To Collect Your Epicor Business Software Tax Deduction

To get into a little bit more detail, the software you purchase has to meet all of the following specifications:

  1. The software must be financed (only specific type leases or loans qualify), or purchased outright by you.
  2. The software must be used in your business for 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. Basically, the software can’t be custom code.

Now for some more good news: We know about some software that fulfills all of Section 179’s requirements. It’s a brand new Epicor 10 system, installed and maintained by Encompass Solutions, Inc, of course.

Contact your accounting professional today to see how implementing Epicor 10 will allow you to take advantage of IRS Section 179 tax deduction.

There is bad news, though: We can’t do anything about the spiders.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.