Maximize Your Business Savings with Section 179 Tax Deductions at Smith Ford of Lowell
As a business owner, every dollar saved can make a big difference, especially when it comes to purchasing new equipment or vehicles. If you’re in the market for a new vehicle, the Section 179 tax deduction could help you save significantly on your taxes while upgrading your company fleet.
At Smith Ford of Lowell, we want to ensure that businesses across Indiana take full advantage of this valuable tax break, which allows you to deduct the full or partial purchase price of qualifying vehicles from your taxable income. This blog will explain how the Section 179 deduction works, what vehicles qualify, and how buying from our dealership can help you maximize your business savings.
What Is Section 179?
The Section 179 deduction is part of the U.S. tax code that allows businesses to deduct the full or partial cost of certain business equipment or vehicles purchased or financed during the tax year. Instead of depreciating the asset over time, businesses can deduct the total cost upfront, providing significant tax relief.
For businesses looking to purchase vehicles, Section 179 can be an excellent way to reduce your tax burden while acquiring the equipment you need to keep your operations running smoothly.
Key Section 179 Deduction Highlights:
- Maximum deduction limit for 2024 is $1,160,000.
- Total equipment purchase limit before deduction phase-out is $2,890,000.
- Applies to new and used vehicles and equipment purchased or financed and put into service by the end of the year.
For businesses in Indiana, this deduction can be a game-changer, allowing you to invest in reliable vehicles from Smith Ford of Lowell and see immediate savings on your taxes.
How Section 179 Works for Vehicle Purchases
When it comes to vehicles, there are specific qualifications under the Section 179 tax code. Not all vehicles qualify for the full deduction, but many popular Ford models do. Here’s a breakdown of how you can apply the deduction to your business vehicle purchases:
1. Qualifying Vehicles
Under Section 179, vehicles that are used for business purposes more than 50% of the time and meet certain weight and design requirements may qualify for the full deduction. This includes:
- Passenger vehicles: These vehicles can qualify for a partial deduction up to $19,200 for 2024.
- Trucks, vans, and SUVs: Vehicles with a gross vehicle weight rating (GVWR) of over 6,000 pounds (like many Ford trucks and SUVs) can qualify for the full deduction.
Popular Ford Vehicles That Qualify for Section 179:
- Ford F-150: As one of the most versatile trucks on the market, the Ford F-150 qualifies for the full Section 179 deduction, thanks to its powerful performance and GVWR.
- Ford Super Duty: The Ford Super Duty lineup offers incredible towing and hauling capability, making it perfect for businesses that need heavy-duty trucks. The F-250 and F-350 both qualify for the full deduction.
- Ford Explorer: This midsize SUV is perfect for businesses that need a mix of passenger seating and cargo space. With a GVWR above 6,000 pounds, the Ford Explorer is eligible for the full Section 179 deduction.
- Ford Transit Vans: If your business relies on transporting goods or equipment, the Ford Transit is a top choice. It qualifies for the full deduction and provides ample cargo space to meet your business needs.
2. Vehicle Usage Requirement
To qualify for the deduction, the vehicle must be used for business purposes more than 50% of the time. If you use your vehicle for both business and personal use, you can still claim the deduction, but only for the portion of time it’s used for business.
3. Deduction Limits
For passenger vehicles like sedans or smaller SUVs, there is a maximum first-year deduction of $19,200 for 2024. However, larger vehicles like trucks and SUVs that meet the 6,000-pound GVWR threshold can qualify for the full Section 179 deduction, allowing you to deduct up to $1,160,000 in qualifying purchases.
Why Now Is the Perfect Time to Buy Your Business Vehicle
With tax season approaching, now is the perfect time to take advantage of Section 179 and invest in a new vehicle for your business. Here’s why:
1. Immediate Tax Savings
By deducting the full or partial cost of your vehicle purchase this year, you can see immediate savings on your taxes, reducing your overall tax liability for the year. This can free up cash flow to reinvest in your business, helping you grow and succeed.
2. New and Used Vehicles Qualify
Both new and used vehicles qualify for the Section 179 deduction, so whether you’re looking for the latest Ford F-150 or a reliable pre-owned Explorer, you can take advantage of this tax benefit.
3. Deadline for 2024
To qualify for the deduction, your vehicle must be purchased, financed, and put into service by December 31, 2024. That means there’s no better time than now to visit Smith Ford of Lowell and find the perfect vehicle for your business.
Shop at Smith Ford of Lowell and Maximize Your Section 179 Benefits
At Smith Ford of Lowell, we’re committed to helping local businesses grow and thrive. Our knowledgeable sales team can walk you through the Section 179 process and help you find the right vehicle for your business. Whether you need a durable Ford F-Series truck, a spacious Transit Van, or a versatile Explorer, we have the inventory and expertise to help you make the most of this valuable tax deduction.
Why Choose Smith Ford of Lowell?
- Expert guidance on Section 179 and other tax incentives.
- A wide selection of Ford vehicles that qualify for the deduction.
- Flexible financing options to make your vehicle purchase more affordable.
Stop by Smith Ford of Lowell today or give us a call to learn more about how Section 179 can help your business save on taxes and invest in the future. Don’t wait until the end of the year—start maximizing your savings now!
