2016 Tax Deduction for Business
Section 179 of the IRS tax code allows businesses to deduct up to the full purchase price of qualifying equipment purchased or financed during the 2016 tax year
- Incentive created by U.S. government to encourage small/medium businesses to buy equipment and invest in themselves; includes Ford Trucks, Vans & Wagons
- Vehicles must be used for business purposes more than 50% of the time
- Improvement over 2015:
- Write-off up to $25,000 of the purchase price on a new Ford Truck, Cargo Van and Wagon over 6,000 lbs. GVWR on their 2015 IRS tax return
- Write-off up to $500,000 wroth of one or more new Ford Trucks or Cargo Vans over 6,000 lbs. GVWR on their 2016 IRS tax return
Vehicles Qualify for the full Section 179 Deduction?
Many vehicles that by their nature are not likely to be used for personal purposes qualify for full Section 179 deduction including the following vehicles:
1. Heavy “non-SUV” vehicles with a cargo area at least six feet in interior length (this area must not be easily accessible from the passenger area.) To give an example, many pickups with full-sized cargo beds will qualify (although some "extended cab" pickups may have beds that are too small to qualify).
2. Vehicles that can seat nine-plus passengers behind the driver's seat (i.e.: Hotel / Airport shuttle vans, etc.).
3. Vehicles with: (1) a fully-enclosed driver's compartment / 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.
Please Note: This information is provided by your local Ford Dealership as a public service to you. It should not be construed in any way as tax advice or a promise of potential tax savings or reduced tax liability. Individual tax situations may vary. Federal rules and tax guidelines are subject to change. For more information, about the Section 179 tax code and tax deductions, please contact your tax professional for complete rules applicable to your transactions and visit the Internal Revenue Service website at www.irs.gov.