Did You Know You Can Deduct Over a Million Dollars for Trucks, Vans and Equipment?
What is Section 179?
You can deduct the full purchase price of qualifying equipment purchased during the tax year. This means that work trucks and vans that you buy or lease are likely eligible for this incentive. The maximum deduction for 2020 is up to $1,040,000 and you will need to elect it; the deduction will not be applied automatically.
Are there restrictions?
Both new and pre-owned vehicles are eligible; however, it's important to note that vehicles purchased must be in service before December 31, 2020 to qualify. In addition, vehicles purchased need to be used primarily for business purposes. If personal use is greater than 50%, it will not qualify for the Section 179 deduction.
Additional Details
Consult with your accountant or tax advisor to discuss your financial strategy. This is a great incentive for your small or medium-sized business to add new work vehicles that improve reliability and/or improve efficiency.
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