2018 Business Tax Breaks in Phoenix

December 10th, 2018 by

We Even Make The Tax Code Work For You

Now is the time to purchase the additional vehicle(s) needed for your business at Bill Luke in Phoenix. 100% expensing for Federal income Tax Purposes may be available on your next Ram Truck purchase.

Your new Ram truck can qualify as Section 179 property for U.S. Federal Income Tax purposes. As a taxpayer may elect to treat the cost of any Section 179 property as an expense and allowed as a deduction for the taxable year in which the property is acquired and placed in service. A qualifying business may expense up to $1,000,000 of Section 179 property during 2018. Consult your tax professional to determine your vehicle depreciation and tax benefits. Also, a Ram truck is generally considered qualified property for purposes of section 168(k) for U.S. Federal Income Tax purposes. This means a taxpayer may elect to treat the cost of any qualified property as an expense allowed as a deduction for the taxable year in which the property is acquired and placed in service

What is the Section 179 deduction?

Section 179 of the IRS Tax Code allows a business to deduct, for the current tax year, the full purchase price of financed or leased equipment and off-the-shelf software that qualifies for the deduction. The equipment financed, leased or purchased has to be within the specified dollar limits of Section 179, and the equipment must be placed into service in the same tax year that the deduction is being taken (for example, the equipment must be put into service between January 1st and December 31st of the year the deduction is to be taken.) Read more Here. 

Can I lease or finance equipment and take the Section 179 Deduction?

Absolutely, the deduction you take may exceed the total loan or lease payments you make for the year.

How do I know if the property I am purchasing or leasing qualifies for the Section 179 Deduction?

Most vehicles and equipment that businesses purchase or lease will qualify for the deduction. Please review the list of equipment that qualifies for the Section 179 Deduction in the chart below.

How much can you deduct?

The amount you can deduct is generally equal to the purchase price of qualifying property up to $25,000. There are some limitations, including a $25,000 limit on the amount a small business owner can elect to deduct for the purchase of certain sports utility vehicles. There is also a limitation for businesses that purchase more than $200,000 in qualified equipment. The IRS website has a more detailed explanation of deduction limits.

You may also have the option under Section 168(k) of expensing the entire cost of qualified assets they acquire and place in service between September 28, 2017, and December 31, 2022. Many of the assets that qualify for the Section 179 expensing allowance are also eligible for the Section 168(k) expensing allowance (which is also known as bonus depreciation). The bonus depreciation allows you to deduct up to 100% of your truck purchase(s) in the year it was placed in service. In a 33% tax bracket, you could save up to $25,000 or more on your taxes this year with the purchase of a qualifying Ram truck or van.

Does the date of my purchase have an impact on the Section 179 Deduction?

Yes, to qualify for the Section 179 deduction for any given tax year, the equipment must be purchased or leased and placed into service between January 1 and December 31 of that year.

 

UP to $25,000 of the purchase cost in the first year

Eligible Vehicles

Expense up to 100% of the purchase cost in the first year + Up to the $510,000 aggregate dollar limitation

Eligible Vehicles

 

Scott Ludwig– Commercial/Fleet Manager

602-544-3709

[email protected]

 

Commercial business is our business, and we’ve got the built-for-work vehicles, On The Job™ allowances, and the keep-you-on-the-road-to-profitability specialized service and sales expertise to prove it. Whether it’s a Ram truck or a commercial van, a Chrysler sedan or a Jeep® brand SUV, let us help you select the right vehicle and programs to meet your unique business needs.

For more information on fleet services, or to get in touch with the Bill Luke Fleet Team, by completing the below contact form.

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* The information provided here is intended as a general overview of the Section 179 Deduction. You should always consult with a tax professional on business tax deductions.
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