Section 179 Deduction
What Is The Section 179 Deduction?
If you’re a business owner looking to expand your fleet with a new Ford, your purchase may be covered under Section 179 of the current IRS code. Section 179 allows businesses to deduct the cost of qualifying operational equipment purchased or financed during the tax year, including certain vehicles. This tax deduction was introduced to encourage companies to invest in themselves, giving them more flexibility in improving and growing their operations.
To qualify for a Section 179 deduction, your vehicle must meet certain requirements:
Heavy sport utility vehicles (SUVs) with a Gross Vehicle Weight Rating (GVWR) between 6,000 and 14,000 pounds are subject to a Section 179 expense limit. This limit does not apply to vehicles designed to seat more than nine passengers, vehicles with a cargo area of at least six feet that is not easily accessible from the passenger compartment, or vehicles that fully enclose the driver compartment and load-carrying device.
Vehicles eligible for Section 179 may be purchased either new or used. However, leased vehicles, as well as vehicles that you plan to lease out to others, do not qualify.
To qualify for a deduction, the vehicle must be used for business purposes at least 50% of the time. If the vehicle is not used in business operations 100% of the time, there is a reduction in the amount of depreciation you can deduct, corresponding to the percentage of personal use.
You can only claim a Section 179 deduction in the tax year that the vehicle is put into service. This date corresponds to the day the property is ready and available for use, not necessarily when it is first used in your business operations.
There are several more specific rules governing what property is eligible for Section 179 tax deductions. For more detailed insight into your business’s property, consult your tax advisor.
Qualifying Ford Models
Whether you’re looking for a heavy-duty pickup truck to haul materials around Secaucus or a reliable work van for your expanding services, the Ford lineup has the vehicle you need for your commercial operations. Explore some of the Ford trucks and vans that qualify for a Section 179 tax deduction, and start planning your fleet’s next upgrade:
- Ford F-650
- Ford F-750
- Ford Transit
- Ford E-Transit
- Ford Stripped Chassis Models
Keep in mind, some models may or may not qualify based on trim level, equipment, and optional features. To explore the full range of available Ford models that are eligible for Section 179 deductions, visit the experts at United Ford today.
