Section 179 for Business Owners - 2018 Business Tax Breaks in Tucson!

SECTION 179 BUSINESS TAX DEDUCTIONS FIRST YEAR EXPENSING

Now is the time to purchase the additional vehicle(s) needed for your business at Larry H. Miller Dodge Ram Tucson. Your New Ram® truck can qualify as Section 179 property for U.S. Federal Income Tax purposes. This means that as a taxpayer you may elect to use the cost of any Section 179 property as an expense, allowed as a deduction for the taxable year in which the property is placed in service. A qualifying business may expense up to $1,000,000 of Section 179 property during 2018. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2,500,000.*

* Please consult your tax professional to determine your specific vehicle depreciation and tax benefits. 

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By submitting your contact information to Larry H. Miller Dodge Tucson you consent to be contacted by telephone about purchasing a vehicle or obtaining vehicle financing. Clicking on the Submit button above is your electronic signature.

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  • Tuesday 8:30am-9:00pm
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FAQ's

Q. What is the Section 179 deduction?

A. Section 179 of the IRS Tax Code allows a business to deduct, for the current tax year, the full purchase price of financed or leased equipment and off-the-shelf software that qualifies for the deduction. The equipment financed, leased or purchased has to be within the specified dollar limits of Section 179, and the equipment must be placed into service in the same tax year that the deduction is being taken (for example, the equipment must be put into service between January 1st and December 31st of the year the deduction is to be taken.)

Q. What's the difference between Section 179 and Bonus Depreciation?

A. The most important difference is both new and used equipment qualify for Section 179 Deduction, while Bonus Depreciation covers new equipment only. Bonus Depreciation is useful to very large businesses spending more than whatever Section 179's spending limit is for that year. Also, businesses with a net loss in a given tax year qualify to carry-forward the Bonus Depreciation to a future year. When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation - unless the business has no taxable profit in the given tax year.

Q. Can I lease (or finance) equipment and take the Section 179 Deduction?

A. Absolutely. In fact, this is a very effective strategy, as the deduction you take may actually exceed the total loan or lease payments you make for the year.

Q. How do I know if the property I am purchasing or leasing qualifies for the Section 179 Deduction?

A. Most vehicles and equipment that businesses purchase or lease will qualify for the deduction. Please review the list of equipment that qualifies for the Section 179 Deduction in the chart below.

Q. How much can you deduct?

A. The amount you can deduct is generally equal to the purchase price of qualifying property up to $25,000. There are some limitations, including a $25,000 limit on the amount a small business owner can elect to deduct for the purchase of certain sports utility vehicles. There is also a limitation for businesses that purchase more than $200,000 in qualified equipment. The IRS website has a more detailed explanation of deduction limits.

Q. Does the date of my purchase have an impact on the Section 179 Deduction?

A. Yes. To qualify for the Section 179 deduction for any given tax year, the equipment must be purchased or leased and placed into service between January 1 and December 31 of that year.

* The information provided here is intended as a general overview of the Section 179 Deduction. You should always consult with a tax professional on business tax deductions.

SECTION 179 QUESTIONS? (888) 494-0857

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By submitting your contact information to Larry H. Miller Dodge Tucson you consent to be contacted by telephone about purchasing a vehicle or obtaining vehicle financing. Clicking on the Submit button above is your electronic signature.




* The information provided here is intended as a general overview of the Section 179 Deduction. You should always consult with a tax professional on business tax deductions.
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