Save On Commercial Vehicles with Section 179 Deductions
If you are ready to upgrade your business, you don't have to wait. Get a quality business-use or fleet vehicle and deduct up to the full purchase price this tax season. At Advantage Ford of Freemont, our fleet and commercial vehicle experts can help you choose your vehicle and enjoy Ford Pro benefits like business financing, maintenance and repair services, and more! Get started by browsing our selection of Section 179-eligible vehicles and see how much you can save to upgrade your capabilities.
What Is Section 179?
Section 179 is a provision of the IRS tax code intended to help small to medium businesses make the investments they need to grow their business. Any equipment purchased, including software, furniture, and vehicles, qualifies for up to a full deduction of the purchase price on the current year's tax return, reducing the tax burden. There are limitations on the type of vehicle and vehicle use requirements.
Deduction Limit
The total deduction for equipment purchased in 2024 is $1,220,000.
Spending Cap
Businesses who purchase $3,050,000 in equipment start to phase out the deduction amount dollar for dollar. Once a business spends $4,270,000, they no longer qualify for Section 179.
Bonus Depreciation
Bonus Depreciation was the old method of deducting business expenses. It is currently still in effect until sunset in 2026. For 2024, bonus depreciation is 60 percent on top of the Section 179 deduction.
Deduction Limit for SUVs in 2024
Heavy SUVs have a deduction limit of $30,500 in 2024. The IRS has yet to announce limits for other vehicles, such as smaller crossovers or passenger vehicles.
Who Is Eligible for Section 179 Deduction
Businesses and organizations who purchase equipment for their work can deduct vehicles through Section 179 as long as they meet the business use and purchase cap requirements. The spending caps are in place to ensure small to medium businesses are the primary benefactors of Section 179 deduction benefits.
Which Vehicles Qualify for Section 179 Deductions?
All vehicles qualify for at least a partial deduction as long as they meet the 50-percent business-use requirement. At Advantage Ford Fremont, you can purchase or lease Ford Super Duty trucks, cargo vans, and passenger vehicles that meet the requirements. In general, passenger vehicles 6,000 to 14,000 pounds qualify for a partial deduction, while all vehicles over 14,000 pounds or modified for a specific purpose (ambulance, cargo van, emergency services, etc.) qualify for a full deduction.
Frequently Asked Questions
Yes, new and pre-owned vehicles qualify as long as they are used for business purposes at least 50 percent of the time.
Yes, non-tax capital leased vehicles that meet the 50-percent use requirement qualify for the deduction.
To qualify for the Section 179 deduction, vehicles must be for business purposes at least 50 percent of the time. Owners who fall below the 50 percent usage requirement risk Section 179 recapture, which means they have to pay back the deduction.
To qualify for the Section 179 deduction, vehicles must be purchased and placed into use in the tax year for which they are claimed. For example, to deduct the purchase price in 2024, the eligible dates are between January 1, 2024, through December 31, 2024.
There is no specified time for an ownership requirement. However, the vehicle must remain at least 50 percent business use or risk recapture.
Contact Advantage Ford Fremont for More Commercial and Fleet Benefits
For more information about Section 179 deductions and how to save on fleet and commercial vehicles at Advantage Ford Fremont, contact our finance experts. Our dedicated team of experts can assist you with all your commercial vehicle needs, from Ford Pro services to vehicle selection and more.
