How the Software Shield Strategy Helps You Build Income While Reducing Taxes
The software shield is primarily used as an advanced tax deduction strategy under the IRS code 179 for software business purchases. Remember the last time you purchased a pre-built, revenue-generating software product with the potential to create income through an arm’s-length agreement. Giving you full ownership and a clear path to generate revenue through marketing, licensing, or development. This establishes your right to future income while aligning with IRS-compliant business acquisition standards. Right now, you can qualify for a 5-1 deduction on eligible software, CRM systems, and Software as Service products, but must be considered to be off-shelf and ready to use for the general public. Software such as QuickBooks, Microsoft Office, and Standard CRM systems. These are great examples to consider using and applicable for eligible software under the IRS code 179.
Who qualifies for Section 179?
- Keep More of What You Earn From Section 179 — Advanced Tax Strategies for Business Owners & High-Net-Worth W-2 Earners
- Entrepreneurs with significant taxable income looking for a legally structured offset
-W-2 or 1099 earners facing a high tax liability this year
– Business owners seeking a tax-advantaged way to diversify income
– High-net-worth individuals searching for asset-backed mitigation strategies with full documentation
– Established wealth builders who’ve already maxed out traditional strategies and need something more advanced
– Anyone facing a $250,000 tax bill and ready for a smarter solution
CPA Experts Manage the Entire Process
Join a 30-minute strategy virtual call to determine eligibility. The first virtual call would be an introduction discovery call. Reviewed by elite CPAs, attorneys, and ex-IRS professionals, who bring oversight to every structure. Vetted with 15 plus years of experience. Behind them is the 15+
year track record of the Legacy Tax Consultants, trusted by high-income clients who don’t have time for
Amateur hour. America’s top 1% —delivered by a Forbes-ranked team of PhDs, CPAs, CFPs, JDs, LLMs, CHFCs, CLUs, CEPAs, and Master’s-level specialists with over a century of combined expertise.
Software Purchase 179 Tax Deduction Real-World Scenarios
Across each of these cases, The Legacy Tax Consultants have structured the acquisition and compliance strategy
to ensure the client walks away with both a viable asset and a serious tax advantage, all with minimal effort on
their part.
What The Legacy Tax Consultants (LTC) Do for You
This strategy is precisely structured to meet IRS standards and provide solid documentation throughout. From purchase to amortization, every detail complies with regulations and demonstrates real economic substance. Third-party software valuations confirm the asset’s fair market value. Signed purchase agreements verify legal ownership transfer. Amortization schedules fully align with Section 179 of the Internal Revenue Code. Evidence of economic control and activity supports compliance.
-Vetting and carefully selecting highly qualified software assets that demonstrate real, verifiable revenue streams and maintain an active, engaged user base
– Drafting comprehensive and robust purchase agreements that are specifically designed to withstand thorough professional review and ensure clear terms
-Transferring complete and full legal rights to both the software and its entire customer base, thereby creating tangible and measurable economic value
-Providing detailed amortization schedules along with all necessary supporting documents to facilitate accurate and compliant financial filings
-Offering timely early disposition advice whenever it is strategically beneficial to enhance overall outcomes and add value
-Collaborating closely and effectively with your CPA or legal team to ensure a smooth, seamless, and confident execution process from start to finish.
