Section 179 Tax Savings
Save on Your Business Purchases with Section 179 Tax Benefits
Does your business need a new truck to accomplish its daily tasks? Do you need to buy a new work van that can be upfitted with the features your job requires? Are you looking for ways to save your business money while having the equipment and vehicles needed to accomplish the job? If you answered yes to any of these questions, you'll want to pay attention to the Section 179 tax deductions available to you.
What is the Section 179 Tax Deduction?
The IRS (Internal Revenue Service) created a tax provision to incentivize businesses to invest in the essential vehicles and assets they need. This tax deduction allows businesses to deduct their entire purchasing cost of eligible machinery, equipment, and vehicles from their taxable income. This is done in the same year these purchases are made and put into service, meaning that you don't have to spread out the depreciation over several years like before.
Businesses are encouraged to take part in this tax deduction in hopes that they will use the free capital to reinvest in themselves, either by expansion, added resources, or operational improvements.
What Qualifies for the Section 179 Tax Deduction?
As with everything, there are limitations and qualifications included in the Section 179 tax deduction.
The qualifications include:
- Qualifying assets include tangible personal property used for business purposes - machinery, vehicles, equipment.
- Qualifying businesses include construction, delivery services, landscaping, agriculture, healthcare, retail services, real estate, and much more. As long as you are using your vehicle for your business, it should qualify.
- The vehicle (or other asset) must be used for business purposes more than 50 percent of the time.
- The vehicle (or other asset) must be bought, financed, or leased and put into service within the tax year.
The 2025 limitations are:
- Deduction Limit - The Section 179 deduction limit is currently set (for 2025) at $1,250,000. Businesses can deduct up to this amount on equipment and vehicles for this year.
- Spending Cap - For 2025, the phase-out threshold is set to $3,130,000. Once you reach this cap, the deduction limit will begin to be reduced.
- Bonus Depreciation - For 2025, a 40 percent bonus depreciation is available. Bonus depreciation is available for brand-new equipment and varies depending on the tax year.
How Does the Section 179 Tax Deduction Work?
Once you have purchased a qualifying vehicle, how do you get the tax deduction? It's simple. When you file your taxes, you'll want to use the IRS Form 4562. On this form, you'll be instructed to enter the information required to claim the Section 179 tax deduction. Make sure to have the correct purchasing, leasing, or financing information before you file.
What Types of New Ford Vehicles Qualify for the Section 179 Tax Deduction?
Here at Fred Beans Ford of Mechanicsburg, we offer several new and used Ford vehicles that qualify for the Section 179 tax deduction. Of course, any of these vehicles must be used for your business over 50 percent of the time and must meet all of the other qualifications that only you can provide. That being said, our finance team would love to help you purchase a new Ford vehicle for your business. Some of the models that may help you save with the Section 179 tax deduction include:
Contact Fred Beans Ford of Mechanicsburg to Learn More About Your Section 179 Tax Deduction Options
Whether you're from Carlisle, Camp Hill, or beyond, we'd love to show you around our new and used inventories. We can offer you the latest lineup of new Ford models and get you behind the wheel today. We also have an online finance application that you can use from any jobsite in Harrisburg, Enola, or Mechanicsburg. Feel free to contact our team to learn more or stop by our showroom today.
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Fred Beans Ford of Mechanicsburg
6320 Carlisle Pike
Mechanicsburg, PA 17050
- Sales: 8554898869
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