Section 179 Tax Deductions for Georgia Businesses
For business owners near Smyrna, Atlanta, Marietta, and Winder, Georgia, seeking to make smart end-of-year investments, Section 179 Ford Vehicle Deductions can be one of the most valuable tools for reducing taxable income. If you’re considering purchasing a Ford truck, SUV, or commercial vehicle from Wade Ford, understanding how this deduction works can help you plan strategically.
What is the Section 179 Tax Deduction?
Section 179 is part of the IRS tax code that encourages businesses to invest in themselves. According to Section179.org, Section 179 allows businesses to deduct the full purchase price of qualifying vehicles and equipment used for business within the same tax year, offering immediate financial benefits instead of spreading depreciation over several years.*
To qualify, the vehicle must be used more than 50% for business purposes, titled in the company’s name, and placed into service before December 31. If these criteria are met, the deduction can apply whether you buy or finance the vehicle.
Vehicles eligible for Section 179 deductions generally fall into three categories: cars and light trucks under 6,000 pounds, heavy SUVs and pickups between 6,000 pounds and 14,000 pounds, and vocational vehicles such as cargo vans or box trucks. Each category carries its own deduction limit, so it’s essential to verify your Ford vehicle’s weight and classification before claiming the deduction.
Section 179 Limits and Bonus Depreciation
The total Section 179 deduction begins to phase out once total qualifying purchases exceed a certain amount, making timing critical. For vehicles purchased and placed into service in the same tax year, deductions are limited by vehicle type. For instance, heavy-duty Ford trucks and SUVs, such as the Expedition, F-250, and Transit, often qualify for higher deductions due to their high gross vehicle weight ratings.
In addition to Section 179, businesses may qualify for bonus depreciation. This provision allows companies to continue writing off a portion of the vehicle’s remaining cost after the initial deduction. Bonus depreciation applies to both new and used vehicles, as long as they are new to the business and meet IRS guidelines.
Which Ford Vehicles Qualify for Section 179 Benefits?
Not all vehicles qualify for the full Section 179 deduction, but many models available at Wade Ford do. Eligibility depends largely on a vehicle’s gross vehicle weight rating (GVWR) and how it’s used in your business. Vehicles are divided into three main categories:
- Cars and light SUVs under 6,000 pounds GVWR generally qualify for a smaller first-year deduction, currently capped at around $20,400 when used 100% for business. These include models like the:
- Heavy SUVs, trucks, and vans between 6,000 and 14,000 pounds GVWR may qualify for a larger deduction, up to $31,300 in the first year. Popular qualifying Ford vehicles in this category include the:
- Specialized or vocational vehicles designed for commercial use — such as box trucks, cargo vans, shuttle buses, and utility vehicles — can qualify for the full Section 179 deduction if used exclusively for business. Ford’s Transit Cutaway, E-Series, and Chassis Cab models typically fall into this category.
The key to qualifying is demonstrating that the vehicle is used primarily for business. The more dedicated the vehicle’s role is to your operations, the more likely it will qualify for the highest deduction level.
Business-Use and Documentation
The IRS requires that any vehicle claimed under Section 179 be used primarily for business, meaning more than 50% of its total mileage must be for business purposes. Keeping detailed records, such as mileage logs, purchase receipts, and service documentation, will help support your deduction in case of an audit. The vehicle must also be placed into service by the end of the tax year, so if you plan to purchase from Wade Ford, ensure the transaction and title transfer are completed before December 31.
Financing your vehicle does not disqualify you from Section 179 benefits. You can still claim the deduction as long as all other criteria are met, providing an excellent opportunity to preserve working capital while still gaining significant tax relief.
Can I claim Section 179 for a used Ford vehicle?
Yes. As long as the vehicle is new to your business, used vehicles are eligible for the deduction.
What happens if I use the vehicle for both personal and business purposes?
You can still claim Section 179, but the deduction will be limited to the percentage of business use.
Is there a deadline to claim the deduction?
Yes. The vehicle must be placed into service, meaning ready and available for business use, by December 31 of the tax year.
Contact Our Team for More Information
Section 179 provides business owners with the opportunity to invest in reliable Ford vehicles while securing significant tax savings. Consult your accountant or tax advisor to determine eligibility and ensure proper documentation. You can also visit us near Smyrna, Atlanta, Marietta, and Winder, or contact Wade Ford for additional information.
*Source: Section179.org
