What Is Section 179? How to Save This Tax Season

December 14th, 2022 by

2021_Ford_Transit_Driving

We know how important it is for you to run your Fenton business smoothly. That’s why our experts at Sunset Ford St. Louis are dedicated to helping you find a high-quality vehicle you can trust to get the job done right, at a price that fits in your business budget. Our selection of new Ford models comes in all shapes and sizes so you can easily find a vehicle that checks off all of your boxes. But, did you know that you might be able to take advantage of the Section 179 deduction for your business and save big when you purchase an eligible vehicle?

 

 

But, what is Section 179? The Section 179 deduction is designed to help you invest in your business by allowing you to write off a certain amount of your vehicle’s purchase price from your gross income.  For example, if you purchase a $70,000 Ford vehicle for your business, then you can deduct $70,000 from your gross income. With a 35% tax rate, that would result in a savings of $24,500 in taxes! Section 179 deductions do have some nuances, so you’ll want to talk to a tax advisor if you’re considering taking advantage of it. In the meantime, our finance professionals at Sunset Ford St. Louis are happy to go over the general details of Section 179 with you today!

Section 179 Vehicle Qualifications

As we mentioned, there are some limitations to Section 179. Not every vehicle is eligible for tax deductions. However, technically any work vehicle that is strictly used for business purposes around Arnold will almost always qualify. Standard passenger cars, trucks, and SUVs may also be eligible if they’re used for qualified business purposes 50% of the time. It’s recommended that you talk to a tax professional in the Kirkwood area that knows the ins and outs of Section 179 before you make a final decision on a vehicle purchase for your business. Typically, if the vehicle has any of the following traits, there’s a good chance it qualifies for the Section 179 deduction:

  • 9+ passenger seating capacity
  • Fully-enclosed driver’s compartment
  • No seating behind driver’s seat
  • Gross Vehicle Weight Rating between 6,000 pounds & 14,000 pounds

If the vehicle doesn’t have any of these traits but 50% of the time it’s being used is for qualified business use then it may still be eligible. Our suggestion is to reach out to a tax advisor you trust for extra guidance on Section 179 eligible vehicles.

Potential Eligible Section 179 Vehicles From Ford

Many of the vehicles in the Ford lineup could be eligible for the Section 179 deduction depending on their usage for your business. Best of all, business use or not, you can expect to enjoy a comfortable driving experience in St Louis when you’re behind the wheel of a Ford model. With that in mind, take a look at some of the potential vehicles that could be eligible for the Section 179 tax deduction below:

  • Ford Transit
  • Ford Transit Connect
  • Ford Super Duty™
  • And more!

Find a Section 179 Vehicle With the Help of Sunset Ford St. Louis!

Now that we’ve answered, “What is Section 179?” are you ready to find your very own dependable Ford to help your business succeed? Sunset Ford St. Louis has you covered. Let us know when you’re ready to grow your business fleet today!

 

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