How Do I Qualify My Vehicle for the Section 179 Tax Break?

Construction Worker Working with Tools He had in the back of his Ford 4x4 Pickup Truck

What Is Section 179 & What Does It Mean For You?

Business owners not only need to operate their companies, but they should also know pertinent tax laws that can aid them in obtaining various benefits and breaks, such as Section 179. Section 179 of the United States tax law states that a business can deduct up to the total purchase price of a new or used vehicle that has a Gross Vehicle Weight Rating (GVWR) of 6,000 lbs or more and is used for business purposes more than 50% of the time.

Section 179 Deductions & Limitations

With a new tax year come new tax rules, and for 2023, businesses will be able to write off as much as 1,160,000 dollars worth of vehicles, equipment, and software used by and for the company. Section 179 is vital for small and medium-sized businesses, but the tax law has a couple of main limitations.

The amount of money deducted can not be more than the income of the business owner’s trades or the total businesses they own.
If the qualified assets the business owner puts into effect during the taxable year exceeds $2.89 million, including inflation indexing, the deduction allowance phases out.

What Vehicles Does Section 179 Apply To?

Section 179 allows business owners to deduct the purchase price of both new and used vehicles and equipment, whether financed, leased, or purchased in full.

Ford vehicles that qualify for up to 100% of the purchase price can be deducted:

F-150 (6.5-ft. or 8-ft.bed)
F-250 Super Duty
F-350 Super Duty
F-450 Super Duty
Transit Van

Vehicles that qualify for up to $25,000 deducted:

F-150 SuperCrew (5.5-ft. or 6.5-ft. bed)
Transit Wagon
Expedition

Vehicles that qualify for up to $11,560 deducted:

Transit Connect Van
Transit Connect Wagon

Vehicles that qualify for up to $11,160 deducted:

Explorer
Edge
Escape

The information in this article is factual. However, it should not take the place of a discussion with your sales representative and a licensed tax professional to have all of the relevant facts and information presented to you to understand Section 179 fully. Tax law can be challenging to comprehend, and this article is for simple guidance only and not to be used in place of an expert’s advice.

At Benna Ford, we offer our customers some of the best prices and services. With more than 100 new and used vehicles to choose from, our outstanding sales team and finance department will work hard to make sure you drive away happy. And our fantastic service department will take care of your new-to-you vehicle as if it were their own.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, and license charges. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week. MSRP may not represent the actual price at which vehicles are sold in this trade area.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Price does not include applicable tax, title, license, and $349.00 service fee. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week. MSRP may not represent the actual price at which vehicles are sold in this trade area.