Bellamy Strickland Commercial Truck | Section 179 Deduction

Section 179

Time is Running Out to Take Advantage of the Section 179 IRS Tax Deduction

Medium Duty Trucks Put in Service by Year’s End May Be Eligible for Section 179 Tax Savings

There’s no better time to finance a new Isuzu NPR, NRR, NQR or FTR for your businessAs the end of the year approaches, many business owners from landscaping companies to moving businesses, delivery organizations, event planners, construction professionals and more are trying to find ways to reinvest in their business while also reducing their tax burden. One way to do this is by taking advantage of Section 179 of the IRS Tax Code, which was created both to encourage business owners to reinvest in their business and to stimulate the economy. The incentive allows business owners to deduct the full purchase price for qualifying equipment — which includes most work trucks — on this year’s tax filing. Be sure to consult your tax professional to help you determine if a purchase of this type is right for your business. 

No matter your business’s needs, from a landscaping/construction dump bed to a box truck, hooklift truck or other application, when you decide to finance a new medium duty truck, the experts at Bellamy Strickland Commercial Truck can help you the perfect truck to drive your business. Serving the Metro Atlanta area and beyond, we are the Truck Capital of Georgia! Call our talented sales staff today, (888) 765-2504.

How Can My Business Benefit from the Section 179 Tax Deduction?

Unlike with many other business purchases, equipment eligible for Section 179 does not have to be deducted each year through depreciation. That means that if you finance or lease a piece of qualifying equipment, you can deduct the full purchase price from your gross income 

The sales specialists at Bellamy Strickland Commercial Truck can help you find and upfit a medium duty truck to meet the unique needs of your industry. Call us today at (888) 765-2504 to start shopping for your next medium duty truck.  

Is Section 179 Complicated? 

Section 179 is fairly straightforward. To be eligible for the tax deduction, the equipment must be tangible, used more than 50% of the time for business purposes, and cannot be purchased from a related party. Additionally, it must be placed into service before the end of the year.   

When taking advantage of Section 179the business must include a brief description of the truck, the total cost, and the amount to be deducted through Section 179 within Part I of the IRS Form 4562. The amount being claimed as Section 179 should be included on Line 6 of Form 4562.  

Section 179 Limits and Requirements

Section 179 does come with limits – there are caps to the total amount written off ($1,040,000 for 2020), and limits to the total amount of the equipment purchased ($2,590,000 in 2020). The deduction begins to phase out on a dollar-for-dollar basis after $2,590,000 is spent by a given business (thus, the entire deduction goes away once $3,630,000 in purchases is reached). This makes Section 179 a true small and medium-sized business deduction. 

To qualify for the deduction, the medium duty truck also must be used for business purposes more than 50% of the time. To determine if the work truck will meet this guideline, simply multiply the cost of work truck by the percentage of business-use to arrive at the monetary amount eligible for Section 179. Finally, the work truck can not be purchased from a related party or it won’t qualify for the deduction.

How Much Could I Save?

Nothing can take the place of good advice from your tax professional or someone who understands the implications of Section 179 as it relates to your tax situation. However, The IRS offers a simple calculator  you can use to estimate your tax savings. Here is an example of the tax savings on a $50,000 purchase.   

If you are ready to start shopping for a new or used medium duty truck, call today at  (888) 765-2504 to speak with a truck specialist at Bellamy Strickland Commercial Truck.