Section 179 Tax Benefits
Are you considering buying a new work truck for your business in Downingtown? Do you need a new work van to handle your travels around Coatesville? Would you like to save on your next commercial vehicle purchase? If you answered yes to any of these questions, you'll want to take a closer look at the benefits of the Section 179 tax deduction. This helpful tax deduction allows businesses to receive even more back on their taxes, helping you and your business save money on the items and vehicles you need.
What is the Section 179 Tax Deduction?
The IRS (Internal Revenue Service) created the Section 179 tax deduction to incentivize businesses to invest in themselves. When you buy an eligible vehicle or piece of equipment and use this tax-saving offer, you'll receive one lump sum through your taxable income. This means that you won't have to wait to receive the tax break you deserve. The IRS hopes that with this extra cash, businesses will reinvest it in themselves, adding resources, expanding their business, making operational improvements, and more. With the tax return that you receive, though, you can do whatever you'd like.
Qualifications for the Section 179 Tax Deduction
For the 2025 tax year, there are specific qualifications business owners will need to meet in order to receive the Section 179 tax deduction. These include:
- Asset Qualifications - The assets that qualify for this tax deduction can be tangible personal property that's used for business purposes. These can include vehicles, machinery, equipment, and more. Whatever asset you purchase must be used for business purposes more than 50 percent of the time. It also must be bought or leased and put into service in the current tax year in order to meet the 2025 tax deduction limits.
- Business Qualifications - What types of businesses can use the Section 179 tax deduction? As long as you're using your vehicle for business, it should qualify. Some common businesses include landscaping, electricians, plumbing, construction, healthcare, agriculture, delivery services, real estate, retail services, and more.
- Deduction Limit - The deduction limit for the 2025 tax year is $1,250,000. A business can deduct up to that amount for this year.
- Spending Cap - There is a phase-out threshold in 2025 for $3,130,000. If this cap is reached, the deduction limit is reduced.
- Bonus Depreciation - Are you buying brand-new equipment? If so, bonus depreciation is available. This bonus varies by tax year, helping you save even more on qualifying purchases. For 2025, the bonus depreciation is 40 percent.
What Types of New Ford Vehicles Qualify for Section 179 Tax Savings?
Any of our new Ford vehicles could qualify for the Section 179 tax deduction, as long as the vehicle is being used for business purposes. Many popular new Ford models for businesses include the Ford F-150, Ford Super Duty, Ford Transit, and Ford Explorer. We recommend taking a closer look at our current new Ford lineup and searching for the right truck for your daily Malvern, Exton, or beyond drives.
Contact Fred Beans Ford of Exton to Learn More About Your Section 179 Tax Saving Options
If you have any questions about the Section 179 tax deduction, finding a new work truck or van, or more, our team is here to help. Feel free to contact us at your next convenience. And don't hesitate to use our many online finance tools, including our finance application, our KBB Instant Cash Offer tool, and our Fred Beans ExpressWay shopping tool. You can use these right from your Exton home and get started on your next vehicle purchase.
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Fred Beans Ford of Exton
415 W. Lincoln Hwy
Exton, PA 19341
- Sales: 484-517-4252
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