Owners of small and large businesses alike are able to write off the purchase of qualifying vehicles on their taxes using the Section 179 deduction.
In some cases, the entire price of a vehicle can be deducted, while in others, the deduction is capped at $28,900 for 2023. In either case, businesses can take advantage of the Section 179 deduction to save big on their taxes.
A wide variety of Ford vehicles in our inventory at D’Orazio Ford qualify for this deduction. If you’re looking for a new Ford truck, van, or SUV that qualifies for Section 179, reach out to our friendly team at D’Orazio Ford by calling (815) 476-5205 or visit us in person at 1135 S Water St, Wilmington, IL 60481.
There are various qualifications a vehicle must meet to be deducted from taxes under Section 179. Below is a cheat sheet to help you understand which vehicles qualify.
What is The IRS Section 179 Tax Code?
Section 179 deduction allows businesses to write off the entire purchase price of a business vehicle if it meets specific qualifications. Previously, businesses had to write off vehicle depreciation year by year, but now they can write off the entire purchase price the year it is bought and put into service.
What Ford Vehicles Qualify for the Section 179 Tax Deduction?
There are a few different types of qualifications that a work vehicle must meet in order to qualify for the section 179 tax deduction. Different qualifications result in different tax write-offs that can be used for the purchase. For example, some vehicles qualify for a 100% deduction while others may only be eligible for a $25,000 deduction. It all depends on the type of vehicle as well as the gross vehicle weight rating or GVWR.
Here are all the Ford Vehicles that will qualify for the Section 179 work vehicle tax deduction along with what level of deduction they qualify for:
Ford Trucks That Qualify for Section 179 Tax Deductions
Ford pickup trucks fall into one of two categories. They will either qualify for the 100% depreciation deduction or the $25,000 depreciation deduction. Which one of these deductions the truck qualifies for depends on the size of the truck’s bed. If the truck has a bed length of over six feet and a gross vehicle weight rating of over 6,000lbs it qualifies for the maximum depreciation deduction of 100% of the purchase price. Trucks that qualify include the Ford F-150, Ford F-250, and Ford F-350 as long as the bed is over six feet in length.
If the bed is under six feet in length, the truck is considered a passenger truck and only qualifies for the $25,000 depreciation deduction. An example of a truck that qualifies for the $12,200 depreciation deduction is the Ford F-150 SuperCrew with a 5.5ft bed.
Ford Pickup Trucks
Trucks like the Ford F-150, F-250, and F-350 with a bed over six feet and a GVWR of over 6,000 lbs qualify for the full 100% depreciation deduction. Trucks with smaller beds, like the F-150 SuperCrew with a 5.5 ft bed, qualify for a maximum deduction of $28,900 in 2023.
Ford Vans
Cargo vans like the Ford Transit Super Duty with a GVWR of over 6,000 lbs qualify for a full 100% deduction. Smaller vans like the Transit Connect Van and Wagon with a GVWR under 6,000 lbs qualify for a maximum deduction of $12,200 for 2023.
Ford SUVs
Larger SUVs, such as the Ford Expedition and Ford Explorer, with a GVWR of over 6,000 lbs, qualify for a $28,900 deduction in 2023. Smaller SUVs qualify for a $12,200 deduction.
Have Questions About How Section 179 Tax Deduction Works?
If you have any further questions about how the Section 179 Tax Deduction can help your business save money on taxes, give D’Orazio Ford at (815) 476-5205 and a friendly team member will be happy to assist you!
The original article titled Section 179 Tax Deduction | D’Orazio Ford was first published at https://www.dorazioford.com/section-179-tax-deduction/
