If you own a business in Feasterville, Pennsylvania, it’s important to be aware of Section 179 tax deductions. When you buy a qualifying truck or van, you can write off a portion of or the entire purchase price for this year’s tax return. In this guide, we’ll break down the basics of Section 179, how to remain eligible for tax benefits, and which Ford models qualify.
What’s Section 179?
Section 179 is an IRS tax code for businesses that lets you immediately write off the cost of qualifying business vehicles and equipment in the year you buy and use them. Instead of claiming the depreciated value over several years, you can claim the full cost right away. This benefit can reduce your taxes, improve your cash flow, and enhance your business’s growth.
For 2025, businesses can deduct up to $1,250,000, and the benefit begins phasing out once your purchases exceed $3,130,000. There is also a depreciation bonus that can enhance your savings. It’s important to note that your deduction can’t exceed your business’s net taxable income.
Section 179 and Vehicle Deductions
In order to qualify for a Section 179 deduction, a vehicle must meet specific requirements, and you must keep certain records. Any new or used vehicle is eligible for benefits as long as you are its new owner.
Maximum Deductions
The IRS determines the maximum deduction based on your vehicle’s gross vehicle weight rating (GVWR). The GVWR is a car’s maximum safe weight capacity, including passengers, cargo, and the vehicle itself. Always ask about the GVWR before buying if you’re interested in claiming the cost in a Section 179 deduction.
Commercial vehicles over 14,000 pounds GVWR qualify for a full Section 179 deduction (up to $1,250,000). Heavier passenger vehicles between 6,000 and 14,000 pounds GVWR are eligible for a $31,300 deduction. The maximum deduction for cars under 6,000 pounds GVWR is estimated to be $20,400.
All of these maximum deductions scale down with your percentage of business use. For example, if you use your vehicle for business on 70% of the miles driven, then you can claim up to 70% of the maximum deduction.
Business-Use Requirements
To qualify for a Section 179 vehicle deduction, you must meet the following requirements:
- You must use your vehicle for business on over 50% of the miles driven.
- Your deduction can’t exceed your business’s income. Any unused deduction may carry over to future years.
- The vehicle’s title must be in your company’s name.
- Your car must be purchased or financed and in business use before December 31st of the same year you bought it.
- You must maintain business use above 50% over your vehicle’s lifetime, which is typically considered five years by the IRS.
Purchasing and Financing
How you pay for your car can affect your tax breaks. You must own the vehicle or have liability over it to claim the full Section 179 benefit. This means you may purchase your vehicle or finance it through a non-tax capital lease.
Ford Vehicles Qualifying for Section 179 Deductions
Ford’s lineup includes plenty of tax-friendly options, especially those with work-focused designs. With a Ford, you’ll likely qualify for a Section 179 deduction and avoid any luxury vehicle limitations. Remember that almost every Ford can qualify for this deduction, but it’s essential to meet the requirements to claim any benefits.
Ford’s F-Series trucks are excellent choices. The F-150, F-250, F-350, F-450, and F-550 can meet the requirements if they’re equipped correctly. Keep in mind that trucks with a GVWR over 6,000 pounds and beds at least 6 feet long qualify for full purchase price deductions.
Most Ford Transit vans would also qualify, including the E-Transit series. If you need an SUV instead, check out the Expedition or Expedition MAX.
Best Practices for Following Section 179 Vehicle Deduction Rules
Qualifying for Section 179 means following the details exactly. Make sure you keep all of your ownership and purchase documentation. It’s also important to maintain detailed logs of how much you drive and whether your drive was a business or personal matter. Don’t forget to check the GVWR before buying either, as not all trucks and SUVs may qualify. Working with a Ford dealer that understands these business tax rules, such as John Kennedy Ford Feasterville, is an easy way to save time and ensure your car qualifies.
Buy Your Next Business Vehicle From John Kennedy Ford Feasterville
If you’re a business owner in Feasterville, Pennsylvania, it’s easy to buy or finance your next vehicle with us. We know the Section 179 commercial tax rules and which vehicles qualify. We’ll check weight ratings, explain trim options, and help you time your purchase for the best tax outcome. Section 179 is a perfect opportunity for you to upgrade your work vehicles and cut your tax bills. From F-150s that handle daily job site demands to Transit vans that expand your service territory, Ford’s commercial lineup delivers the reliability your business needs. Contact us today to learn more.
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