What Is Section 179?

Section 179 of the Internal Revenue Code gives businesses the ability to deduct the full purchase price of qualifying equipment and software in the same tax year they're used, rather than depreciating them over time. This offers an immediate tax benefit and helps businesses retain more working capital.

Many types of business equipment qualify for Section 179 deductions, including vehicles used for business purposes more than 50 Percent of the time.

Eligible vehicles fall under two categories:

• Light Section 179 Vehicles: Vehicles that are under 6,000 pounds or three tons. This includes passenger cars, crossover SUVs, and certain pickup trucks.
• Heavy Section 179 Vehicles: Vehicles that are at least 6,000 pounds but no more than 14,000 pounds or three to seven pounds. This includes commercial vans, large pickup trucks, and full-size SUVs.

Eligible vehicles can be new or used and may include:

• Passenger vehicles and light duty vehicles.
• Heavy SUVs
• Trucks
• Vans

Benefits of Section 179 for Your Business Vehicle Purchase

By utilizing Section 179, your business can experience significant tax advantages when purchasing Ford commercial vehicles from Parsons Interstate Ford LLC:

• Immediately write off up to the full purchase price of qualifying vehicles in the current tax year
• Accelerate your tax savings instead of depreciating the vehicle cost over a longer period
• Preserve more working capital to invest back into your business
• Acquire the commercial vehicles you need now to grow your business and stay competitive

Ford Commercial Vehicles Eligible for Section 179

At Parsons Interstate Ford LLC, we offer an extensive lineup of Ford commercial vehicles that may qualify for Section 179 expensing, depending on their use. Some popular options include:

Ford F-Series Trucks

Ford offers the popular F-150, Super Duty F-250, F-350, and F-450 models that are ideal for a wide range of industries like construction, agriculture, deliveries, and more. Many configurations can qualify for Section 179.

Ford Transit and Transit Connect Vans

The versatile Transit and compact Transit Connect vans provide ample cargo space and convenience for businesses on the go. These vans, when used for business purposes, are often eligible for Section 179 deductions.

Ford SUVs and Crossovers

Models like the Ford Expedition, Explorer, Escape, and Bronco can serve business needs in style. Depending on factors like GVWR and business usage, you may be able to expense the vehicle cost with Section 179.

Limitations

There are some limitations to Section 179 to keep in mind:

• Vehicles must be used for business purposes more than 50 percent of the time.
• The deduction may be limited based on vehicle type and weight ratings.
• Deduction cannot exceed your business's taxable income for the year.
• Vehicles over certain depreciation limits may have deduction capped.

Consult your tax professional to understand exactly how Section 179 would apply in your business's unique situation.