IRS Section 179 Deduction
There is simply no better time than now to take advantage of Section 179 and Bonus Depreciation because it ends December 31st.
To see how this code applies to your business, be sure to consult your tax professional. If you're looking for more information on this deduction, visit section179.org.
Deduct up to $25,000, plus normal 20% depreciation on any remaining balance, if any, all in the first year. 1,2
(Applies to Trucks and Vans over 6,000 lbs. GVWR)
Deduct up to $3,460 in the first-year. 2
(Applies to Trucks and Vans under 6,000 lbs. GVWR)
Deduct up to $3,160 in the first-year. 2
(Applies to passenger vehicles under 6,000 lbs. GVWR)
1. This analysis applies only to vehicles placed in service in the United States after December 31, 2016 and by December 31, 2017 with no written binding contract for acquisition in effect before January 1, 2017. The aggregate deduction of $25,000 under Internal Revenue Code Section 179 is most beneficial to small businesses that place in service less than $200,000 of "Section 179 property" during the year (vehicles and other business property). 2. IRC Section 280F(d)(7(B) requires that the limitation under IRC Section 280F(a)(1) be adjusted annually, based on the CPI automobile component for October of the preceding year. The IRS officially announced the Section 280F depreciation limits in Revenue Procedure 2015-2019. The passenger automobile limitation is $3,160, the trucks/vans under 6,000 lbs. limitation is $3,460. The expensing restrictions under Section 280F do not apply to vehicles that are considered to be "qualified nonpersonal use vehicles" (QNUVs). A QNUV is generally a vehicle that, by virtue of its nature or design, is not likely to be used more than a de minimis amount for personal purposes. For more information, see Income Tax Reg., Sec. 1.280F-6(c)(3)(iii), Income Tax Reg. Sec. 1.274-5T(k), and Revenue Ruling 86-97, and contact your tax advisor for details. Consult your tax advisor as to the proper tax treatment of all business-vehicle purchases.