Section 179 Tax Benefit
Do you have a growing business in Portsmouth? You could qualify for the Section 179 Tax Deduction. This tax break was originally created to help small to moderately-sized businesses save on full or partial costs for qualifying vehicles, but many businesses now qualify. Portsmouth Ford offers many of these vehicles to Hampton and Exeter business owners. Learn more with us below as we go over the benefits and what you need to qualify for this greatly appreciated automotive tax benefit in Portsmouth.
What is the Section 179 Tax Break?
The Section 179 Tax Code was created by the IRS to help small-sized and medium-sized businesses to grow and expand– but any sized business can now benefit from this needed tax break. Businesses that qualify could save up to $1,000,000 on commercial vehicles and other qualifying equipment! Eliot, ME businesses could save a large amount of money on new, used, or pre-certified used vehicles with the Section 179 Tax Deduction.
Have you bought new vehicles for your business within the past year? Be sure that the titles for all of these vehicles have been registered in your business’s name. They must also be placed in service by December 31, 2022. How do you know if your vehicles qualify? Let’s see below.
Which Vehicles Qualify for the Section 179 Tax Break?
Here are the qualifications needed for this tax deduction:
- Vehicles with at least a 9-passenger seating capacity
- Vehicles featuring a fully-enclosed driver’s compartment/cargo area without seating behind the driver’s seat or a body section extending 30 inches past the windshield– like Ford Transit Vans
Buying a passenger Ford truck or SUV instead of a commercial vehicle doesn’t disqualify you. If these vehicles are used for business purposes at least 50% of the time, they do qualify. But if these vehicles aren’t used for business purposes, their depreciation limits will be reduced by a certain amount. The full Section 179 expense deduction with Bonus Depreciation maximum is $11,160 for cars and $11,560 for trucks and vans. There are a few exceptions:
- Ambulances and hearses
- Taxis and other transportation vehicles
- Some vehicles that have been customized for business purposes specifically
- Heavy, non-SUV vehicles that have a cargo area with a minimum length of 6 feet
At Portsmouth Ford, we always offer new vehicle specials on our quality Ford vehicles in case the vehicle you’re looking for doesn’t qualify for the Section 179 tax break.
Qualifying Ford Vehicles
Here’s a list of just some of the most common qualifying Ford vehicles:
- F-150 (6.5-foot or 8-foot bed)
- F-250/F-350 Super Duty®
- Ford Transit Vans
- And more!
Are you unsure of your commercial Ford vehicle options? There are more than you think! Call us at 603-433-1221 to learn more about your options.