Medium Duty Trucks May Be Eligible for Section 179 Tax Savings

What if you could invest in a work truck and write off part or the entire purchase amount on your taxes? Section 179 of the IRS Tax Code is one incentive that allows business owners to deduct the full purchase price for qualifying equipment on this year’s tax filing. Most medium duty trucks qualify for this deduction.

It is important to consult your tax professional as you determine if a purchase of this type is right for your business. No matter what your needs are, when you decide to purchase a work truck, the experts at Bentley Truck Services can help you get behind the wheel of a new or used medium duty vehicle. We currently have locations in New Castle, Delaware, Logan Township and Maple Shade, New Jersey, Landenberg, Luzerne, South Philadelphia and North Philadelphia, Pennsylvania, as well as Miami, Florida, with more additions to the tri-state area planned.

How Can Bentley Truck Services Help With the Section 179 Tax Deduction?

Most medium duty trucks qualify as an eligible purchase under Section 179 of the IRS Tax Code. Unlike other business purchases, equipment that is eligible for Section 179 does not have to be deducted each year through depreciation. The full purchase price can be deducted from this year’s tax filing as long as the equipment is purchased or leased and placed into service before the end of the year.

The sales specialists at Bentley Truck Services can help determine what type of truck is best for your business, how to upfit the truck to meet the unique needs of your industry, and can determine if the truck is eligible for the Section 179 tax deduction.

Call us today at 215-937-1044 to start shopping for your next medium duty truck.

Is Section 179 Complicated?

Unlike most parts of the IRS Tax Code, Section 179 is not difficult. It was designed to be as simple as possible to encourage reinvestment in businesses as a way to stimulate the economy. Many types of equipment qualify for the Section 179 tax deduction, including medium and heavy-duty trucks. To be eligible for Section 179, the equipment must be tangible, used more than 50% of the time for business purposes, and cannot be purchased from a related party.

When taking advantage of Section 179, the 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.

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 Isuzu truck, call today at 215-937-1044 to speak with a truck specialist.