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2500 Jordan Lane NW Huntsville, AL 35816 2565399441
2500 Jordan Lane NW, Huntsville, AL 35816
Sales: (256) 539-9441 | Service: (877) 880-3459 | Parts: (866) 899-4453

Section 179 Tax Savings

IRS Section 179 is a tax code that allows many small businesses to write-off up to $500,000 on their 2017 IRS tax returns when investing in new equipment. Previously, companies might have dispersed these deductions out over several years. IRS Section 179 changes this and now allows many small businesses to write-off up to the entire purchase cost of qualifying new Ford trucks or vans. Continue reading if you would like to deduct up to $500,000 in new automobiles in the first year they’re placed in service.

Tax Benefit Examples For Qualifying Businesses

Tax Treatment

Up to 100% of the purchase cost in the first year (plus any remaining basis using MACRS method)

Up to $25,000 of the purchase cost in the first year (plus any remaining basis using MACRS method)

Up to $11,560 in the first year (plus any remaining basis using MACRS method)

Up to $11,160 in the first year (plus any remaining basis using MACRS method)

Applies To

Trucks and Cargo Vans over 6,000 lbs. GVWR 

Passenger Trucks/Vans and SUVs over 6,000 lbs. GVWR

Trucks and Cargo Vans under 6,000 lbs. GVWR

Passenger Automobiles under 6,000 lbs. GVW

Eligible New Ford Vehicles F-150 (6.5-ft. or 8-ft.bed), F-250/F-350 Super Duty®, Transit Van

Expedition, F-150 SuperCrew® (5.5-ft. or 6.5-ft. bed), Transit Wagon

Transit Connect Van, Transit Connect Wagon

 

Edge, Flex, Escape, Focus, Explorer, Fusion, Fiesta and Taurus

 

What Is IRS Section 179?

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. If you purchase a qualifying vehicle, you may be able to write-off the full purchase price from your gross taxable income.

Which Vehicles Qualify For the Greatest IRS Savings?

The vehicles which qualify for the greatest tax savings are trucks with a GVWR greater than 6,000 pounds and a bed length of at least six feet (i.e., Ford F-150/F-250/F-350). These new Ford vehicles qualify for the maximum first-year depreciation deduction of up to the full purchase price. SUVs, including trucks, with a bed length of fewer 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.

How Do I Receive This?

The qualifying vehicle must be purchased and placed into service between January 1, 2017, and December 31, 2017, for it to qualify for the Section 179 deduction. The vehicle must be used at least 50% for business, based on mileage, in the first year it is placed in service. If your truck is used for both personal and business use, the cost eligible for the deduction would be the percentage used for business. Based on this tax code, all businesses that purchase or finance less than $2 million in business equipment during the 2017 tax year should qualify for the Section 179 deduction.

Take Advantage Today!

With the significant tax savings Section 179 offers, and the end-of-year sales happening now, it is an incredible time to buy. Contact Woody Anderson Ford to discover more about this money-saving opportunity.

NOTE: The information supplied here is provided by your local Ford Dealer as a public service to its customers. It should not be construed as tax advice or as a promise of potential tax savings or reduced tax liability. Individual tax situations may vary. Federal rules and tax guidelines are subject to change. For more information about the Section 179 expense write-off or other business vehicle expense write-offs, you should consult your tax advisor for complete rules applicable to your transaction and visit the Internal Revenue Website at www.irs.gov.

1. This analysis applies only to vehicles placed in service in the United States after December 31, 2015, and by December 31, 2017, with no written binding contract for acquisition in effect before January 1, 2017. The aggregate deduction of $500,000 under Internal Revenue Code Section 179 is most beneficial to small businesses that place in service less than $2,000,000 of “Section 179 property” during the year (vehicles and other business property).

2. IRC Section 280F(d)(7(B) requires that the limitation under IRC Section 280F(a)(1) be adjusted annually, based on the CPI automobile component for October of the preceding year. The IRS officially announced the Section 280F depreciation limits in Revenue Procedure 2017-23. The passenger automobile imitation is $11,160, the trucks/vans under 6,000 lbs. limitation is $11,560. SUV’s over 6,000 pounds GVWR are limited to a deduction of $25,000 under Section 179(b)(5) with the remaining basis in the vehicle depreciated under normal MACRS methods. The expensing restrictions under Section 280F do not apply to vehicles that are considered to be “qualified non-personal use vehicles” (QNUVs). A QNUV is a vehicle that, by its nature or design, is not likely to be used more than a de minimis amount for personal purposes. For more information, see Income Tax Reg., Sec. 1.280F-6(c)(3)(iii), Income Tax Reg. Sec. 1.274-5T(k), and Revenue Ruling 86-97, and contact your tax advisor for details. Consult your tax advisor as to the proper tax treatment of all business-vehicle purchases.

3. All prices exclude taxes, title, and registration and document fees. Not all buyers will qualify for all offers. Above total savings are examples of specific vehicles; total savings varies by vehicle. (Individual Vehicle Incentives and Offers go here) Available at participating dealers only. For all offers, take new retail delivery from dealer stock by 12/31/2017. See dealer qualifications and complete details. All incentives were correct at the time of printing and are subject to change at any time. Models shown may not represent actual vehicle description listed, and therefore may include additional features and/or accessories.

Dealer Information
Woody Anderson Ford 2500 Jordan Lane NW Huntsville, AL 35816 Get Directions
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