As the calendar inches closer to the end of 2019, now is the time to examine your company’s vehicle needs as they relate to the Section 179 Deduction. If your company requires the use of various kinds of work vehicles, you may be eligible for tax savings, but the vehicles must be purchased by the end of the calendar year.
Not sure if you qualify for the Section 179 Deduction? While we recommend discussing the savings with a tax professional, here’s a primer on the vehicles eligible for up to a $11,160 deduction.
Eligible vehicles include:
- Vehicles that can seat nine-plus passengers behind the driver’s seat (i.e.: hotel or airport shuttle vans)
- Vehicles with: (1) a fully-enclosed driver’s compartment or cargo area, (2) no seating at all behind the driver’s seat, and (3) no body section protruding more than 30 inches ahead of the leading edge of the windshield. In other words, a classic cargo van.
- Heavy construction equipment will qualify for the Section 179 deduction, as will forklifts and similar machinery.
- Typical “over-the-road” Tractor Trailers will qualify.
Certain sports utility vehicles and crossover vehicles also qualify, but they must have a gross vehicle weight fo more than 6,000 pounds but no more than 14,000 pounds to qualify for deducting up to $25,000 if the vehicle is purchased and placed in service prior to December 31 and meets other conditions.
“There’s often a rush at the end of the year for work vehicles, but there’s not always the inventory. We anticipate that need and make sure we have what customers need so they can take advantage of tax savings,” Patrick Chastang, Ford Chastang/Chastang Chrysler Dodge Jeep RAM owner said. (will break that up for each blog)
Service body and flat bed trucks are often at the top of a businesses list, so providing customer’s options is key, especially since a vehicle must be purchased and placed into service by Dec. 31, 2019. The maximum deduction a company can make in a year is $500,000.
Learn more about how Section 179 can help you at Chastang Ford.