Vehicles and Section 179

One of the more popular uses of the Section 179 Deduction has been for vehicles. In fact, several years ago the Section 179 deduction was sometimes referred to as the "Hummer Tax Loophole," because at the time it allowed businesses to buy large SUV's and write them off. While this particular use (or abuse) of the tax code has been modified with the limits explained below, it is still true that Section 179 can be advantageous in buying vehicles for your business.

Vehicles used in your businesses qualify - but certain passenger vehicles have a total deduction limitation of $11,160, while other vehicles that by their nature are not likely to be used more than a minimal amount for personal purposes qualify for full Section 179 deduction (full policy statement available at: IRS.gov ).

What Business Vehicles Qualify for the full Section 179 Deduction?

Note that because many vehicles can serve business and personal function both, the rules for business vehicle deductions are always evolving, and can be complicated. It's easier to list the typical vehicles that will generally qualify for a full section 179 deduction, and then discuss the rules for other vehicles.

Many "work vehicles" that, by their nature, are not likely to be used for personal purposes will usually always qualify for full Section 179 deduction. This includes the following vehicles:

• Vehicles that can seat nine-plus passengers behind the driver's seat (i.e.: Hotel / Airport shuttle vans, etc.).
• Vehicles with: (1) a fully-enclosed driver's compartment / cargo area, (2) no seating at all behind the driver's seat, and (3) no body section protruding more than 30 inches ahead of the leading edge of the windshield. In other words, a classic cargo van.
• Heavy construction equipment will qualify for the Section 179 deduction, as will forklifts and similar.
• Typical "over-the-road" Tractor Trailers will qualify.

Limits for SUVs or Crossover Vehicles with GVW above 6,000lbs

Certain vehicles (with a gross vehicle weight rating above 6,000 lbs. but no more than 14,000 lbs.) qualify for deducting up to $25,000 if the vehicle is purchased and placed in service prior to December 31 and meets other conditions.

Limits of Section 179

Section 179 does come with limits - there are caps to the total amount written off ($1,080,000 for 2022), and limits to the total amount of the equipment purchased ($2,700,000 in 2022). The deduction begins to phase out on a dollar-for-dollar basis after $2,700,000 is spent by a given business (thus, the entire deduction goes away once $3,780,000 in purchases is reached), so this makes it a true small and medium-sized business deduction.

Commercial Vehicles

Do you need a way to transport multiple customers at once? Do you have a contracting business that needs plenty of cargo room? Then we have Ford Transit Vans that will solve your problems and turn your hours into money made. We have a huge selection of versatile, light commercial vehicles with ample cargo room, flexible seating, and capable engines.

Check out our Ford Cargo Van, Crew Van, and Passenger Vans for sale at our dealership in Texas. These premier models come with standard and available features like SYNC four technology with an 8 or 12-inch infotainment screen, multiple driver's assistance features to keep you aware of your surroundings, and cargo lengths that make room for desks, workbenches, shelves, and more. Give your business the support it needs with a commercial vehicle-a dream for electricians, plumbers, locksmiths, and more.

Auto Financing

Take advantage of lease deals and finance offers available for many of our new Ford trucks and commercial vehicles. You can combine multiple offers in addition to the Section 179 Tax Deduction to ensure you receive the lowest price for your new vehicle. You can shop online or speak to one of our dedicated sales representatives for more information. We're here to help your business get going and increase your bottom line.

Pollard Friendly Ford

Our Ford dealership in Texas is your go-to destination for powerful trucks and work vans. You can start your finance process online, browse new Ford inventory, and get locked in with a new Ford today. Our business is your business. Visit your crew at Pollard Friendly Ford and rack up on the savings.