Section 179 - Commercial Vehicle Tax Break

 

Section 179 of the American IRS tax code was drafted with the local business in mind. Section 179 of the IRS tax code lets businesses subtract the full purchase price of qualifying equipment and software bought or financed during the fiscal year up to a total of $500,000.* This means if you buy or lease a qualifying piece of equipment, you can subtract the entire purchase from your gross income. The Section 179 incentive was designed by the United States government to encourage businesses to obtain equipment and invest in their own brand. Almost every kind of business equipment that your company might need to buy most likely qualifies for this incentive.




For passenger vehicles, vans, and trucks that are used more than 50% in a qualified business manner, the deduction for depreciation - including both Section 179 expense deduction as well as Bonus Depreciation - are both limited to a total of $11,060 for cars and $11,160 for trucks and vans. Certain vehicles qualify for spending up to $25,000 if the vehicle is financed and placed in service before the date of December 31 and meet other conditions. A gross vehicle weight rating above 6,000 lbs but no more than 14,000 benefits from Section 179. Section 179 for 2017 expires at 12:00 a.m. on 12/31/2017. If you want to deduct the full price of your equipment from this year's tax total and utilize the new higher deduction limits, it must be bought and put into service by that date.


* Please see tax professional for details

Contact

Ramsey Ford

1233 Telegraph Road
Directions Rising Sun, MD 21911

  • Sales: (410) 658-4801
  • Service: (410) 658-4801
  • Parts: (410) 658-4801

Hours

  • Monday 9:00am-8:00pm
  • Tuesday 9:00am-8:00pm
  • Wednesday 9:00am-8:00pm
  • Thursday 9:00am-8:00pm
  • Friday 9:00am-8:00pm
  • Saturday 9:00am-5:00pm
  • Sunday Closed
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