Significant Savings Possible with Section 179
Commercial Trucks Purchases in 2020 are Eligible for Section 179 Tax Deduction
Now is the time to start thinking about your business’s taxes and how to make the most of allowable IRS tax deductions. There are a few potentially advantageous IRS tax deductions you should consider taking advantage of for your business. Among the top is Section 179 of the IRS Tax Code which is designed to encourage business owners to reinvest in their business by allowing them to deduct the full purchase price for qualifying equipment on this year’s tax filing.
Commercial trucks, such as Isuzu NPR, NRR, NQR and FTR, qualify for Section 179. However, it is important to consult your tax professional as you determine if upgrading your truck or adding to your fleet is right for your business. No matter what your needs are, when you decide to purchase a new or used work truck, the experts at FMI Truck Sales and Service can help you get behind the wheel of a new or used Isuzu Truck. Call us today at 1-800-927-8750 to discuss your commercial truck needs. Our experienced sales team can help you spec your new commercial truck or find a used truck suitable for your business.
Is Section 179 Complicated?
Contrary to many parts of the IRS Tax Code, Section 179 is not difficult. It allows a small and mid-size businesses to deduct the full amount of the qualifying purchase price of equipment, such as a work truck, from this year’s tax filing instead of over the course of many years through depreciation. For commercial trucks purchases, this could amount to significant savings that goes directly to your bottom line.
When taking advantage of Section 179. You must include a brief description of the truck, the total cost, and the amount to be deducted through Section 179. The truck must be placed into service by December 31, 2020. Learn more about Section 179 for vehicles or consult your tax preparer for further information. He or she will know exactly how to claim this deduction, since Section 179 has been around for a number of years.
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.