Turn This Year's Truck Purchase Into A Tax Deduction
Businesses across Kentuckiana may be able to deduct the cost of qualifying work trucks, cargo vans, and commercial vehicles purchased and placed into service before December 31 through Section 179.
Our commercial vehicle specialists can help you find the right Ford truck or van for your business needs and year-end purchasing goals.
What Is Section 179?
Section 179 is a section of the IRS tax code that may allow businesses to deduct the cost of qualifying vehicles and equipment in the year they are purchased and placed into service, rather than depreciating them over time.
For many businesses, that can mean significant year-end tax advantages while upgrading the vehicles needed to keep operations moving.
Because every business situation is different, we recommend consulting your tax professional to understand how Section 179 may apply to your company.
Always consult your tax professional regarding your specific tax situation.
Section 179 At-A-Glance
Section 179 Requirements & Important Deadlines
Before purchasing a commercial vehicle, it's important to understand some of the key requirements associated with Section 179 deductions. Tax laws can change, so always consult your CPA or tax advisor regarding your specific situation.
Vehicle Weight Requirements
Many of the most popular commercial trucks and vans qualify because of their Gross Vehicle Weight Rating (GVWR).
Common qualifying vehicles include:
- Ford F-250 Super Duty
- Ford F-350 Super Duty
- Ford F-450 & F-550 Super Duty
- Ford Transit 250 & Transit 350 Vans
- Ford Chassis Cab Models
- Commercial Upfit Vehicles
In general, vehicles with a GVWR above 6,000 lbs are frequently considered when businesses explore Section 179 deductions.
Business Use Requirement
To qualify, vehicles generally must be used for business purposes more than 50% of the time.
Income Requirement
Section 179 is intended for profitable businesses. In general, the deduction cannot exceed a company's taxable business income for the year.
Year-End Deadline
To be considered for the current tax year, qualifying vehicles generally must be:
- Purchased
- Delivered
- Placed into service
before December 31.
Financing & Leasing
Many businesses explore Section 179 opportunities when financing qualifying vehicles. Your tax professional can advise how financing, leasing, and depreciation rules may apply to your business.
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Why Businesses Buy Before December 31
What Businesses Commonly Use Section 179?
- General Contractors
- Electricians
- Plumbers
- HVAC Companies
- Landscaping Businesses
- Excavation Contractors
- Delivery Services
- Fleet Operators
- Municipalities
- Property Management Companies
- Roofing Companies
- Construction Firms
Serving Businesses Across Kentucky & Southern Indiana
All-State Ford Truck Sales helps contractors, fleet operators, municipalities, and business owners throughout:
- Louisville
- Jeffersontown
- Shepherdsville
- Elizabethtown
- La Grange
- Shelbyville
- Southern Indiana
find qualifying commercial trucks, work vans, chassis cabs, and fleet solutions.
FAQ
Many businesses can potentially deduct qualifying work vehicles under Section 179 when the vehicle is used for business purposes and meets IRS requirements.
Many Ford Super Duty trucks used for business purposes may qualify for Section 179 benefits, depending on how the vehicle is equipped and used.
Many businesses use Section 179 when purchasing cargo vans, including Ford Transit Vans used for deliveries, service work, contractors, and fleet operations.
To potentially take advantage of Section 179 for the current tax year, qualifying vehicles generally need to be purchased and placed into service before year-end.
Placed into service generally means the vehicle is delivered and actively being used for business purposes.
Yes. Section 179 is commonly used by small businesses including contractors, landscapers, construction companies, tradespeople, and fleet operators.
Many businesses finance qualifying vehicles and still explore Section 179 opportunities. Your tax advisor can explain how financing may affect your specific situation.
Absolutely. Contractors are among the most common users of Section 179 because they rely on trucks, vans, and equipment to run their businesses.
Businesses purchasing multiple vehicles for fleet operations often explore Section 179 opportunities. Eligibility depends on the vehicles and business circumstances.
Section 179 rules include limits and requirements that can change over time. Your tax professional can help determine how they apply to your business.
Important Disclaimer
All information provided on this page is for general informational purposes only and should not be considered tax, legal, or accounting advice. All-State Ford Truck Sales is not a tax consultant or CPA firm. Businesses should consult their certified tax professional to confirm eligibility and deductions under Section 179 and other applicable tax codes.
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All-State Ford
1357 Gardiner Lane
Louisville, KY 40213
- Sales: (502) 459-0550