Section 179 Tax Rebate Information

Section 179 Tax Deduction

Thanks to IRS Section 179 of the IRS tax code, many small businesses that invest in new equipment, including qualifying vehicles, will be able to write-off up to $500,000 of these purchases on their 2017 IRS tax returns.¹ Normally, businesses spread these deductions over several years. But now, with tax benefits provided under IRS Section 179, many small businesses can write-off up to the entire purchase cost of one or more qualifying new Ford trucks or vans. Again, that's up to $500,000 worth, all in the first year they are placed in service.


The qualifying vehicle must be purchased and placed into service between January 1, 2017 and December 31, 2017. It must be used at least 50% for business, based on mileage, in the first year it is placed in service. So if you choose to use it for both personal and business purposes, the cost eligible for the deduction would be the percentage used for business. Please note that all businesses that purchase and/or finance less than $2,000,000 in business equipment during tax year 2017 should qualify for the Section 179 Deduction.
For the 2017 tax year, the qualifying vehicle must be purchased and placed into service by December 31, 2017.

The information supplied here is provided by your local Ford Dealer as a public service to its customers. It should not be construed as tax advice or as a promise of potential tax savings or reduced tax liability. Individual tax situations may vary.  Federal rules and tax guidelines are subject to change. For more information about the Section 179 expense write-off or other business vehicle expense write-offs, you should consult your tax advisor for complete rules applicable to your transaction and visit the Internal Revenue Website at or the Section 179 Website at 1.This analysis applies only to vehicles placed in service in the United States after December 31, 2016 and by December 31, 2017 with no written binding contract for acquisition in effect before January 1, 2017. The aggregate deduction of $500,000 under Internal Revenue Code Section 179 is most beneficial to small businesses that place in service less than $2,000,000 of "Section 179 property" during the year (vehicles and other business property). 2.IRC Section 280F(d)(7(B) requires that the limitation under IRC Section 280F(a)(1) be adjusted annually, based on the CPI automobile component for October of the preceding year. The IRS officially announced the Section 280F depreciation limits in Revenue Procedure 2016-23. The passenger automobile limitation is $11,060, the trucks/vans under 6,000 lbs. limitation is $11,160. SUVs over 6,000 pounds GVWR are limited to a deduction of $25,000 under Section 179(b)(5) with the remaining basis in the vehicle depreciated under normal MACRS methods. The expensing restrictions under Section 280F do not apply to vehicles that are considered to be "qualified non-personal use vehicles" (QNUVs). A QNUV is generally a vehicle that, by virtue of its nature or design, is not likely to be used more than a de minimis amount for personal purposes. For more information, see Income Tax Reg., Sec. 1.280F-6(c)(3)(iii), Income Tax Reg. Sec. 1.274-5T(k), and Revenue Ruling 86-97, and contact your tax advisor for details. Consult your tax advisor as to the proper tax treatment of all business-vehicle purchases.

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