In addition to the launch of FALL COMMERCIAL VEHICLE SEASON (NOV 1 - JAN 2), IRS Section 179 provides a great opportunity for small business owners to invest in new equipment and realize tax write-offs on their 2017 IRS tax returns (up to $500,00). This is a great tax benefit your customers can leverage to buy a new Ford!
Normally, small businesses must spread deductions over several years. The tax benefits provided under IRS Section 179 allow many small businesses to write off up to $500,000 of qualifying new equipment in the year the equipment is placed in service.
- The qualifying vehicle must be purchased and placed into service between January 1, 2017 and December 31, 2017
- It must be used at least 50% for business, based on mileage, in the first year it is placed in service
- If you choose to use it for both personal and business use, the cost eligible for deduction would be the percentage used for business
- Note that all businesses that purchase and/or finance less than $2,000,000 in business equipment during tax year 2017 should qualify for the Section 179 Deduction
*For more complete details and a look at our Commercial Truck lineup, please direct your customers to the Ford Commercial Connection Section 179 landing page.
HURRY! MUST ACT BY DECEMBER 31, 2017 TO GET DEDUCTION FOR THE 2017 TAX YEAR.
What is IRS Section 179 & how can it help my bottom line?
- Section 179 is the current IRS tax code that allows you to buy qualifying Ford vehicles and deduct up to the full purchase price (including any amount financed) from your gross taxable income if purchased before December 31, 2017
- That means that if you buy a piece of qualifying equipment and products, you may be able to write off up to the FULL PURCHASE PRICE from your gross taxable
Does the date of my purchase have an impact on the section179 deduction?
- Yes. To qualify for the Section 179 tax deduction for the 2017 tax year, your Ford vehicle must be purchased or leased and placed into service by December 31, 2017
Which vehicles qualify for the greatest IRS tax savings?
- Trucks with a GVWR greater than 6,000 lbs. and a bed length of at least six feet (i.e., Ford F-150/F-250/F-350) qualify for the maximum first-year depreciation deduction of up to the FULL PURCHASE PRICE
- SUVs, including trucks, with a bed length of less than six feet and a GVWR greater than 6,000 lbs. (i.e., Ford F-150 SuperCrew 5½ ft. bed, Explorer, Expedition) qualify for a maximum first year depreciation deduction of up to the first $25,000 of the full purchase price plus 60% depreciation of any remaining balance
What about smaller Trucks/Vans/SUVs?
- Vehicles of less than 6,000 lbs. GVWR (built on a truck chassis), such as the Transit Connect, may still qualify under current bonus depreciation for up to $11,560 per vehicle in the first year
- Passenger automobiles under 6,000 lbs. GVWR also may qualify for up to $11,160 in depreciation
For more information, please refer to IRS.gov (Section 179 Deduction) -or- consult a tax advisor.