Ford Section 179 Tax Deduction

If you are a small to medium business owner which requires the purchase of vehicles for your company, you might be eligible to take advantage of those assets through the IRS Section 179 Tax Deduction. The Internal Revenue Service has provided guidance on deducting expenses under Section 179(a) and on deducting depreciation under Section 168(g).

Section 179 allows taxpayers to deduct the cost of properties as an expense when the property is placed in service. Tax years after 2017, the TCJA increased the maximum Section 179 expense deduction to $1 million. The Section 179 deduction applies to tangible personal property like equipment purchased for use in a trade or business. The IRS, Section 179 deduction allows you to expense one vehicle weighing between 6,000 to 14,000 pounds (or more) up to $25,000 in the year they are placed in service.

If you are interested in learning about writing off the entire purchase price of your company vehicle, look into the Bonus Depreciation Rules passed under TCJA (Tax Cuts and Jobs Act) as it has been significantly improved. Under the new TCJA, Bonus Depreciation allows you to deduct a percentage of the cost of assets in the year they are placed in service. This deduction lets you take your profit to negative as compared to Section 179 which only allows you to break even or make your profit zero.

With the holiday season coming up and the incentive of writing off the cost of vehicles used for business purposes, Ford can help! Here at Santa Monica Ford, we are all dedicated to helping you find the best car for your business at the best price! Head to our Santa Monica Ford in Los Angeles to find out how you can maximize your savings on purchasing a vehicle!

 

And more! Visit or contact us at Santa Monica Ford to learn more about qualifying vehicles.