Section 179 Tax Deduction
Did you know that your commercial vehicles can be used as a tax deduction for your small business? The IRS offers the Section 179 tax deduction program to help small businesses. So what is Section 179, and how can it help your business? Our expert staff at Adams Chrysler Dodge Jeep Ram is here to help you use this tool and save money for your business. This tax code will give businesses the chance to deduct the final purchase price of qualifying software and equipment — up to $1,000,000* — that your company acquired during the calendar year from the gross income. You are eligible to deduct the amount equal to the full purchase price of qualified software and equipment purchases through the Section 179 tax break. This enables you to earn money back when you file taxes at the end of the year.
One of the most significant benefits of the Section 179 tax break is with vans, trucks, and other commercial vehicles. Section 179 vehicles need to be used for greater than 50 percent for business purposes to qualify. Your cumulative depreciation deduction will include the Section 179 tax deduction and 100 percent bonus depreciation, which now incorporates used equipment. Bonus depreciation is generally applied when larger businesses meet or exceed the Section 179 spending cap.