Section 179 Tax Benefits

Whether you're adding a new work van to your growing fleet or starting your first business with the help of a new Ford truck, your purchase may be eligible for Section 179 tax breaks. Section 179 of the current tax code allows businesses to deduct the cost of qualifying operational equipment as an expense in their first year of service, giving Redmond business owners more financial freedom to invest in their operations. Learn more about Section 179 tax deductions and what vehicles qualify with TS&S Ford to see how you can elevate your business with a new Ford.

Section 179 covers a wide range of business-related purchases, from real estate to HVAC systems, but for many, the main draw is the ability to claim tax breaks on vehicles. That said, not every vehicle is eligible for a deduction. To qualify, vehicles must meet specific requirements pertaining to:

• Business Use: To claim a vehicle for a Section 179 tax deduction, the vehicle must be used for business purposes at least 50% of the time. If the vehicle is not used in business operations 100% of the time, there is a reduction in the amount of depreciation you can deduct. 
• Service Date: Vehicles only qualify for a Section 179 deduction in the year they're first put into service. However, it's important to note that the service date is defined as the day the property is ready and available for use, not the first day it's used in your business operations. 
• Ownership: Business owners can claim a Section 179 deduction on the purchase of both new and used vehicles. The only requirement is that the vehicle is financed or bought outright—leased vehicles or vehicles you plan to lease out to others do not qualify. 

If you're considering adding a new SUV to your fleet, Section 179 does limit the amount you can expense. While this deduction limit applies to SUVs with a Gross Vehicle Weight Rating (GVWR) between 6,000 and 14,000 pounds, the limit does not apply if:

• The vehicle is designed to seat more than 9 passengers
• The vehicle has a cargo area of at least 6 feet that is not easily accessible from the passenger compartment
• The vehicle features a fully enclosed driver compartment and a load-carrying device

For specific details about your potential deductions, TS&S Ford recommends contacting your tax advisor.

Even with the Section 179's strict requirements, several reliable Ford models make the cut. Some of the most popular qualifying vehicles include: 

• Ford F-150
• Ford F-150 Lightning
• Ford F-250 Super Duty
• Ford F-350 Super Duty
• Ford F-450 Super Duty
• Ford F-650
• Ford F-750
• Ford Transit
• Ford E-Transit
• Ford Stripped Chassis Models

Not sure which model best suits your operational needs? Visit our dealership near Bend, and our commercial vehicle experts will help you find the Ford with the towing, payload, or upfitting capability you need for your business.

When you're ready to take your business to the next level, reach out to TS&S Ford. Our experts will schedule an appointment at our Madras dealership to walk you through all our available commercial vehicle options. No matter what kind of Ford you need for your Terrebonne fleet, the team at TS&S Ford is here to help.