Ford Section 179 Deduction
Have you been searching for ways to reduce business costs while increasing performance? We encourage you to learn about the Section 179 tax deduction. This IRS tax code was created to help small- and medium-sized businesses invest in themselves by allowing them to deduct up to 100% of the costs of vehicles used for company purposes.1 In order to claim Section 179 tax savings for the current year, your Ford vehicle must be purchased and put into service by the end of the day on December 31, 2022. So, hurry into our Ford dealership near Peoria today to find the new or new-to-you Ford trucks and vans you need to take your business to the next level!
What Are the 2022 Section 179 Deduction Limits?
The Section 179 tax code was created to primarily benefit small and medium businesses. Because of this, there are certain spending limits in place that affect the total amount a company is able to deduct. For 2022, the Section 179 limits are:
- 2022 Deduction Limit: $1,080,0001 -- valid on new and used equipment (must be new to the buyer).
- 2022 Spending Cap: $2,700,0001 -- the max amount that can be spent on equipment before the Section 179 tax deduction begins to reduce on a dollar-for-dollar basis.
- 2022 Bonus Depreciation: 100%1 -- generally taken after the Spending Cap is reached, valid on new and used equipment.
Section 179 can be used to deduct up to 100% of the costs of qualifying commercial vehicles.1 You can also take advantage of partial Section 179 deductions, however, on traditional passenger vehicles that are used for business purposes at least 50% of the time. Wondering if used cars are eligible for Section 179? They are! The important thing is that the vehicle is "new to you." The 2022 Section 179 deductions for passenger vehicles are:
- Cars: $11,160 (including Bonus Depreciation)1
- Trucks & Vans: $11,560 (including Bonus Depreciation)1
- Certain SUVs between 6,000-14,000 pounds: $25,000 (including Bonus Depreciation)1
Which Ford Vehicles Are Eligible for Section 179?
There are many new Ford models and used vehicles that are eligible for Section 179 deductions, including: