The Section 179 Tax Benefit

Do you have a growing business in Glen Burnie? You could qualify for the Section 179 Tax Deduction. This tax break was originally created to help small to moderately-sized businesses save on full or partial costs for qualifying vehicles, but many businesses now qualify. Bob Bell Ford offers many of these vehicles to Columbia and Annapolis business owners. Learn more with us below as we go over the benefits and what you need to qualify for this greatly appreciated automotive tax benefit in Glen Burnie.

What is the Section 179 Tax Break?

The Section 179 Tax Code was created by the IRS to help small-sized and medium-sized businesses to grow and expand– but any sized business can now benefit from this needed tax break. Businesses that qualify could save up to $1,000,000 on commercial vehicles and other qualifying equipment! Severna Park businesses could save a large amount of money on new, used, or pre-certified used vehicles with the Section 179 Tax Deduction.

Have you bought new vehicles for your business within the past year? Be sure that the titles for all of these vehicles have been registered in your business’s name. They must also be placed in service by December 31, 2024. How do you know if your vehicles qualify? Let’s see below.

Who is eligible?

Here are the qualifications needed for this tax deduction:

• All businesses that purchase, finance, and/or lease less than $4,270,000 in new or used business equipment during tax year 2024 should qualify for the Section 179 Deduction. Also, to qualify for the Section 179 Deduction, the equipment purchased or financed must be placed into service between January 1, 2024 and December 31, 2024.

At Bob Bell Ford, we always offer new vehicle specials on our quality Ford vehicles in case the vehicle you’re looking for doesn’t qualify for the Section 179 tax break.

How does it work?

When your business buys certain items of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off maybe $10,000 a year for five years. Section 179 allows business owners to write off the entire equipment purchase price for the year they buy it.

Are you unsure of your commercial Ford vehicle options? There are more than you think! Call us at 443-577-4200 to learn more about your options.

Are there limits?

section 179 does come with limits – there are caps to the total amount written off ($1,220,000 for 2024), and limits to the total amount of the equipment purchased ($3,050,000 in 2024). The deduction begins to phase out dollar-for-dollar after $3,050,000 is spent by a given business, so this makes it a true small and medium-sized business deduction.

See If You Qualify for the Section 179 Tax Deduction Today

Contact us online or call us at 443-577-4200 to learn more about your Section 179 tax deduction options. We’ll help you understand your options when looking for commercial vehicles for your business.