Are you a small business owner that wants to learn about Section 179 Tax Deduction? The Section 179 deduction allows small and large businesses to write off qualifying equipment purchases for the current tax year.
There are changes to the taxes every year, and it’s essential to know to stay up to date. You need to know this about deducting your ford vehicle from your taxes.
Section 179 Deduction
The Section 179 tax deduction can be used for all businesses which purchase, finance, and lease new or used vehicles used for business. The equipment purchased must be used for service between January 1, 2022, and December 31, 2022.
There are limitations to certain qualifying vehicles, with a limitation set for a tax deduction of $11,160, while other qualifying vehicles can get a full tax deduction.
Qualifying Business Vehicles for Full Section 179 Deduction
The rules for qualifying business vehicles for a complete section 179 deduction are constantly changing and sometimes complicated. The vehicles qualifying for a total deduction are not used for personal purposes. These vehicles include:
- Vehicles that can seat nine or more passengers
- Heavy construction equipment, also forklifts, and similar construction equipment
- Typical “over-the-road” tractor trailers
- Vehicles with a fully enclosed driver’s compartment/cargo area, not seating behind the driver’s seat, and no body section protruding more than inches ahead of the leading edge of the windshield
Additionally, passenger vehicles, trucks, and vans that are used more than 50% for qualified business use have a section 179 tax deduction limit: $11,160 for cars and $11,560 for trucks and vans.
If you still have questions about tax deductions concerning your Ford vehicle, we are happy to help! Visit us at Bayshore Ford today.
