Bell Ford - It's All About the Experience!
Bell Ford - It's All About the Experience!
If you own a small business, you should know about the tax code 179 vehicle list for 2021 because it could save you money and expand your business. The government created this credit to incentivize small business owners to invest in themselves, but what can it do for you?
It can help you purchase the equipment you need now, making it so you don’t have to wait to fill your pockets with more cash before buying what you need. Read on to learn how the tax code 179 vehicle list in 2021 can help you, who qualifies for it, and what vehicles you can buy at Bell Ford.
The Section 179 tax credit gives your business a leg up, as you can deduct the full cost of your equipment in the first year from your gross income. This means you could invest in the vehicles your company needs and save on that purchase at the end of the year when filing taxes.
However, there are limits to the tax code 179 vehicle list in 2021. For one, it has a $1,050,000 cap on the total amount you can write off for 2021 and a $2,620,000 limit on the amount of equipment you can purchase. After you reach $3,670,000, the deduction is gone, as it focuses on helping small businesses grow.
Here’s an example of the Section 179 Tax Deduction in action:
If you plan to spend less than $3,670,000 this year for your business, you qualify for the deduction. The 179 tax deduction cars include both new and used vehicle purchases, but you can also use it to buy software for your business.
It doesn’t matter whether you purchase, finance, or lease your equipment. However, you should keep in mind that not every vehicle qualifies for the list of 179 tax deduction cars in 2021. The models must also enter into service sometime during the calendar tax year and must be used more than 50% of the time for your business.
Use your Section 179 tax deduction here at Bell Ford when you explore our inventory of commercial vehicles. We have the vans, trucks, and SUVs in stock that you need to take your business to the next level.
Here are the types of vehicles that qualify for this deduction:
Some of the Ford models that made the tax code 179 vehicle list 2021 include:
Are you ready to expand your business by buying a Ford model from the tax code 179 vehicle list in 2021? Our team at Bell Ford can help you discover which models qualify and help you calculate how much you can save when it comes time to file your taxes.
Making a purchase as big as this one can be daunting, but it doesn’t have to be when you utilize the expertise of our staff. Visit us today at Bell Ford and discover the Ford truck or SUV from the tax code 179 vehicle list for 2021 that will help your business grow.
When comparing Section 179 and bonus depreciation, the difference between them is clear. The Section 179 tax deduction is available every year, while the government decides on a yearly basis whether to offer bonus depreciation, as well as what percentage to offer.
They both apply to new and used equipment, although bonus depreciation is most useful to those who go over the $3,670,000 spending cap that accompanies the Section 179 tax deduction.
Calculating the cost of your equipment after the Section 179 deduction is simple. All you need to know is your first-year write-off, first-year bonus depreciation, and normal first-year depreciation. You then add these three amounts together to find your total first-year deduction.
You also need to calculate your cash savings, which you can find by taking the total cost of your equipment purchases and multiplying that number by your local tax rate. Subtract your cash savings from the total first-year deduction to find the cost of your equipment after-tax.
Please see Section179.org for more information.
