Commercial Vehicle Tax Breaks
If you are a small business owner in Roswell or the surrounding areas, the purchase of commercial vehicles streamlines a wide variety of processes and makes life easier. According to Section 179 of the IRS Tax Code, it is possible to deduct up to 100% of commercial vehicle purchases! At Jim Ellis Ford Sandy Springs, we encourage you to check out our latest commercial vehicle sales and contact us to determine your tax credit eligibility. We’ll also ensure you buy the right vehicle or vehicles for your business’s needs.
What Does the Section 179 Tax Credit Entail?
Section 179 allows you to deduct the full cost of equipment and software from your business’s gross income, such as dump trucks and flatbeds, bookkeeping and payroll software, and forklifts and backhoes. This tax credit is designed to help business owners invest in their enterprises and hopefully enjoy higher revenue streams.
How Does This Tax Credit Work?
For Section 179 to apply, your deductions must be for the current tax year. Any commercial vehicles or other equipment purchased during prior tax years are ineligible. The IRS set limits regarding how much you can write off:
- Total Amount You Can Write Off: $1,160,000
- Total Amount of Equipment Purchased: $2,890,000
Keep in mind that once you hit the $2,890,000 threshold, the deduction eases off in a dollar-for-dollar manner. If you reach $4,050,000 in commercial purchases, the deduction no longer applies.
Who is Eligible?
As long as you buy, finance, or lease new/used equipment exclusively for your business during the applicable tax year, you can use the Section 179 tax credit and conserve commercial funds. The current tax year started on January 1, 2023 and ends on December 31, 2023.
We recommend consulting a tax professional in Alpharetta, Sandy Springs, or the surrounding communities about applying this credit and any other credits and incentives you can put towards your business taxes. Browse our selection of commercial vehicles today to see which models suit your business needs the most! See you soon, and don’t hesitate to reach out with questions!