Deduct the entire cost of your work truck with Section 179
As a business owner, you strike a constant balance between purchasing the vehicles and equipment you need and ensuring you have enough available capital. When it comes to making large commercial vehicle purchases, such as buying the new Ford Super Duty truck, this can become a difficult task. After all, you need vehicles to get your work done, but you also have limits on what you can feasibly spend in a given year. Everything comes down to these critical numbers. At Boyer Trucks, we understand how difficult it has been for businesses during these times. That is why we are incredibly passionate about helping businesses acquire the commercial vehicles they need in a timely manner. Whether that’s through vehicle financing or a straight purchase, our goal is to ensure our customers have the financing options necessary to keep their business moving forward. And one great method for saving money on upcoming commercial vehicle purchases for business owners is to use the Section 179 tax incentive to help create additional tax savings in the year ahead. In this guide, we’ll break down everything you need to know about the Section 179 tax incentive, and how you can use this tax break to secure the Ford and Isuzu fleet vehicles you need to keep your business growing.
What is Section 179?
Part of the U.S. internal revenue code, Section 179 allows businesses to take an immediate expense deduction on the purchase of depreciable business equipment. For businesses that use fleet vehicles for operations, these vehicles count under this code. The difference in using Section 179 rather than a traditional vehicle depreciation calculation is that business owners can take advantage of an immediate deduction rather than capitalizing and depreciating an asset over time. This is a good pick, in particular for businesses that are just getting off the ground. By taking advantage of the tax deduction early on, young businesses stand a better chance of making it through the first critical years. Additionally, it is worth noting that vehicles are eligible under this deduction regardless of whether they are purchased outright or financed. In both cases, the full amount of the vehicle’s purchase price is deductible.
How Can the Section 179 Tax Deduction Help My Business?
The beauty of using the Section 179 tax deduction is that business owners can make the commercial vehicle purchase they need today while simultaneously using the deduction to lower their total tax bill when filing for that year. This is a win all around for business owners who need to make a vehicle purchase but have been hesitant to do so because of worrying about balancing costs during the tax season ahead. To claim this deduction, ask your accountant about qualifying purchases, or visit the IRS website to learn more about filing this deduction.
Key Details to Know
The Section 179 tax deduction is great news for business owners who need to increase the number of commercial vehicles in their fleet before the end of the current tax year. By making these purchases prior to the start of the new tax year, you can take full advantage of the purchase price for tax deductions. Here are some key numbers to keep in mind when filing for this deduction:
- For the 2021 tax year, the maximum Section 179 expense deduction is $1,040,000. Prior to making any additional vehicle purchases, it is worth taking the time to see what your total expense deduction looks like for section 179. This can help you determine if you have additional dollars to allocate for this deduction by making another commercial vehicle purchase.
- In order to qualify for this deduction, the vehicle purchased must be acquired for use for your business. If the vehicle is used for both business and nonbusiness, you can use Section 179 only if the property is used for business more than 50% of the time. In this case, you will multiply the cost of the vehicle by the percentage of business use.
- For example: If you were to purchase a Ford pickup truck to use primarily for business, but you use it 20% of the time for personal use, you would take the total cost of the vehicle and multiply it by 80% to get the amount deductible.
Visit Boyer Truck to Take Advantage of These Tax Savings
If your business plans to use the Section 179 tax incentive to save money on your 2021 tax bill, come see us at Boyer Trucks. We will be more than happy to work with you to ensure you can find the right commercial vehicle prior to the year’s end. And if finances have been holding your business back from investing in the new Ford Super Duty trucks, this tax break could be the perfect fit! We carry a quality inventory of both new and used commercial vehicles, including vehicles in all of the following popular categories:
No matter what your business needs, we can assist you in finding the right inventory to match your budget. Remember, in order to use the Section 179 deduction to lower your 2021 tax bill, you need to complete the purchase of your new or used vehicle before the end of the year. With inventory quickly being secured by businesses looking to take advantage of this tax break, there is no time like the present to come browse our inventory. We look forward to helping you capture the most savings possible on all your current and future commercial vehicle expenses.