Section 179 Tax Benefits

Commercial Inventory
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 2024 can help you, who qualifies for it, and what vehicles you can buy at Bell Ford.

Section 179 at a Glance for 2024

2024 Deduction Limit = $1,220,000

This deduction is good on new and used equipment, as well as off-the-shelf software. To take the deduction for tax year 2024, the equipment must be financed or purchased and put into service between January 1, 2024 and the end of the day on December 31, 2024.

2024 Spending Cap on equipment purchases = $3,050,000

This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true “small business tax incentive” (because larger businesses that spend more than $4,270,000 on equipment won’t get the deduction.)

Bonus Depreciation: 60% for 2024

Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used equipment.

The above is an overall, “birds-eye” view of the Section 179 Deduction for 2024.

Contact us for more details on limits and qualifying equipment.

Here is an updated example of Section 179 at work during the 2024 tax year.
2024section179 Example.jpg

What is the Section 179 Deduction?

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 2024. For one, it has a $1,300,000 cap on the total amount you can write off for 2024 and a $3.050,000 limit on the amount of equipment you can purchase. After you reach $4,270,000, the deduction is gone, as it focuses on helping small businesses grow.

Here’s an example of the Section 179 Tax Deduction in action:

    • Equipment purchases: $1,300,000
    • First year write off: $1,220,000
    • 60% bonus first-year depreciation: $48,000
    • Normal first-year depreciation: $0
    • Total first-year deduction: $1,268,000
    • Cash savings: $443,800
    • Equipment cost after-tax: $856,200

Who Qualifies for This Deduction?

If you plan to spend less than $4,270,000 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 2024. 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.

What Models Are Included in the Tax Write-Off Vehicle List?

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:

  • Delivery cargo vans and box trucks without passenger seating
  • Work vehicles with no obvious potential for personal use
  • Specialty vehicles such as an ambulance or hearse
  • Vans, pickup trucks, and SUVs with a GVWR over 6,000 pounds (qualify for a partial deduction and bonus depreciation)

Some of the Ford models that made the tax code 179 vehicle list 2024 include:

  • Ford truck lineup
  • Ford Explorer
  • Ford Expedition

Who Qualifies for Section 179?

All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2024 should qualify for the Section 179 Deduction (assuming they spend less than $4,270,000).

Most tangible goods used by American businesses, including “off-the-shelf” software and business-use vehicles (restrictions apply) qualify for the Section 179 Deduction.

For basic guidelines on what property is covered under the Section 179 tax code, please refer to list of Section 179 Qualifying Equipment. Also, to qualify for the Section 179 Deduction, the equipment and/or software purchased or financed must be placed into service between January 1, 2024 and December 31, 2024.

For 2024, $1,220,000 of assets can be expensed; that amount phases out dollar for dollar when $3,050,000 of qualified assets are placed in service.

Use Your Section 179 Tax Deduction at Bell Ford

Are you ready to expand your business by buying a Ford model from the tax code 179 vehicle list in 2024? 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 2024 that will help your business grow.

Frequently Asked Questions

What's the difference between Section 179 and bonus depreciation?

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 $4,270,000 spending cap that accompanies the Section 179 tax deduction.

How do you calculate the cost of your equipment after-tax?

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 visit www.Section179.Org for more information.