Thanks to IRS Section 179 of the IRS tax code, many small businesses that invest in new equipment, including qualifying vehicles, will be able to write-off up to $500,000 of these purchases on their 2017 IRS tax returns.¹ Normally, businesses spread these deductions over several years. But now, with tax benefits provided under IRS Section 179, many small businesses can write-off up to the entire purchase cost of one or more qualifying new Ford trucks or vans. Again, that’s up to $500,000 worth, all in the first year they are placed in service.
IS THERE A CATCH?1,2
Section 179 is an IRS tax code that allows businesses to deduct the full price of equipment from their income for any equipment or software purchased during the previous tax year. This tax code was created to encourage American small businesses to invest in and grow their business.
HOW DO YOU WRITE OFF THE COST OF EQUIPMENT?
Some businesses are able to write off the full purchase cost of the equipment or software, while others may write off the depreciation rate. For example, if a machine is purchased for $50,000, the business may choose to write off $10,000 each year instead of all at once.
Yes. If you have leased something that qualifies for a Section 179 deduction within the past tax year, you could write off the cost on your business’s taxes.
That depends on the cost of the equipment you leased or purchased and how much. There is, however, a Section 179 calculator available online which has been optimized for the current year.
Any equipment leased or purchased before December 31, 2017, qualifies for the 2017 tax year and can be written off on your fourth quarter taxes.