Thanks to new guidelines under the IRS Section 179 tax code, many small businesses that invest in new equipment can now write off up to $500,000 of these purchases on their 2017 IRS tax return benefits provided under IRS Section 179, many small businesses can write off up to the entire purchase cost of one or more qualifying new Ford trucks or vans. Again, that’s up to $500,000 worth, all in the first year they’re placed in service.
For the 2017 tax year, the qualifying vehicle must be purchased and placed into service between January 1, 2017, and December 31, 2017.
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. So if you choose to use it for both personal and business use, the cost eligible for the deduction would be the percentage used for business. Please note that all businesses that purchase and/or finance less than $2 million in business equipment during tax year 2017 should qualify for the Section 179 deduction.
In addition to the significant tax savings opportunities above, you can also take advantage of current promotions,3 plus any applicable Customer Cash offers.3 It really is an incredible time to buy.
Some vehicles shown with aftermarket equipment and without standard antenna.
Please Note: This information is provided by your local Ford Dealership as a public service to you. It should not be construed in any way as tax advice or 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 tax code and tax deductions, please contact your tax professional for complete rules applicable to your transactions and visit the Internal Revenue Service website at www.irs.gov.
1. This analysis applies only to vehicles placed in service in the United States after December 31, 2016, and by December 31, 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). The $500,000 deduction decreases by a dollar for every dollar spent on Section 179 property in excess of $2,000,000.
2. Passenger Wagons that seat nine (9) or fewer people behind the driver’s seat will have a limit of $25,000. Wagons that seat ten (10) or more people behind the driver’s seat and cargo vans will have a $500,000 aggregate limit under Section 179 on the amount of first-year deduction. Each $25,000 deduction contributes to the $500,000 aggregate deduction limitation under Section 179.
3. 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 2016-23. The passenger automobile limitation is $11,160; the trucks/vans under 6,000 lbs. limitation is $11,560. 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 generally a vehicle that, by virtue of 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. Vehicles are for representation purposes only. Vehicles shown may have optional equipment not included in payment. See dealer for complete details.