Ford Section 179 Deduction
What Is The Section 179 Deduction?
If you are a business owner looking to expand your fleet with a new Ford, you purchase may be covered under Section 179 of the current IRS code. Section 179 allows businesses to deduct the cost of qualifying operational equiptment 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 business.
To qualify for a Section 179 deduction, your vehicle must meet certain requirements.
- There is a limit to how much you can expense on the cost of heavy sport utility vehicles (SUVs) with a Gross Vehicle Weight Rating (GVWR) between 6,000 lbs and 14,000 lbs. However, this limit does not apply to vehicles designed to seat more than nine passengers, those equipped with a cargo area of at least six feet that is not easily accessible from the passenger compartment, or those that fully enclose the driver compartment and load-carrying device.
- Vehicles eligible for Section 179 can be purchased new or used. That said, leased vehicles and 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 the vehicle is put into service. This date corresponds to the day the property is ready and available for use, not 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 or the IRS.
Qualifying Ford Models
The Ford lineup has the vehicle you need for your commercial needs whether you are looking for a heavy duty pickup truck to haul materials or a work van for your expanding services. Explore our trucks and vans that qualify for a Section 179 tax deduction and start planning your fleet upgrade.
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Please note some models may not qualify based on trim level, equipment, and optional features. To explore the full range of available eligible models please visit the experts at Egglefield Ford in Elizabethtown or Ray Brook, NY today.