Section 179 Deductions for Your New Ford Vehicle
What is the Section 179 Deduction?
The Section 179 deduction, a part of the IRS tax code, allows businesses to deduct the full purchase price of qualifying equipment and software in the same year they are purchased or financed. This incentive encourages businesses to invest in equipment that can help them grow, by allowing them to write off the entire cost upfront rather than depreciating it over several years.
How Section 179 Works in 2025
For the 2025 tax year, Section 179 allows businesses to immediately deduct up to $2,500,000 on qualifying purchases. This makes it easier for small and medium-sized businesses to keep more cash in their operations while upgrading essential equipment and software. If your business buys, finances, or leases qualifying equipment, you can deduct the full cost of the equipment in the year it’s placed in service, reducing your taxable income.
2025 Section 179 Deduction Limits
- Maximum Deduction: $2,500,000 for the year
- Phase-Out Threshold: Begins when total equipment purchases exceed $4,000,000 and is fully phased out at $6,500,000.
- Bonus Depreciation: 100% for both new and used equipment (available after Section 179 deductions are applied).
What Qualifies for Section 179?
Most business-related equipment qualifies for the deduction, including:
- Manufacturing machinery
- Business vehicles (including certain trucks and SUVs over 6,000 lbs. GVWR)
- Computers and office equipment
- Off-the-shelf software
- Certain building improvements
Special Considerations for Vehicles
- Heavy SUVs and Trucks (>6,000 lbs GVWR): Deduct up to $31,300 in the first year.
- Work Trucks & Vans: No special limit; they qualify for full Section 179 deduction.
- Business-Use Requirement: The vehicle or equipment must be used for business purposes more than 50% of the time.
How to Maximize Your Section 179 Benefits in 2025
- Timing Your Purchases: To take full advantage of the deduction, make your purchases before December 31, 2025.
- Financing Options: Leverage Section 179 qualified financing to maximize your tax benefits and preserve working capital. Many vendors offer flexible financing packages specifically for Section 179 purchases.
Bonus Depreciation vs. Section 179
While Section 179 allows you to deduct up to $2,500,000, businesses spending above that threshold can still benefit from Bonus Depreciation, which allows 100% deduction of qualified purchases with no spending cap.
Important Reminders for Section 179
- Keep Records: Maintain documentation such as invoices, contracts, and usage logs to support your deduction claims.
- Consult a Tax Professional: Given the complexity of tax laws and state-specific rules, it’s a good idea to review your Section 179 strategy with a tax advisor to ensure you’re getting the maximum benefit.
For more information on the 2025 Section 179 Deduction and how it can benefit your business, visit section179.org/section_179_deduction
Riverhead Ford
1419-23 Old Country Road, Riverhead, NY 11901
Contact UsHours
| Monday | 9:00AM - 7:00PM |
| Tuesday | 9:00AM - 7:00PM |
| Wednesday | 9:00AM - 7:00PM |
| Thursday | 9:00AM - 7:00PM |
| Friday | 9:00AM - 6:00PM |
| Saturday | 9:00AM - 5:00PM |
| Sunday | 11:00AM - 4:00PM |
| Monday | 7:30AM - 5:30PM |
| Tuesday | 7:30AM - 5:30PM |
| Wednesday | 7:30AM - 5:30PM |
| Thursday | 7:30AM - 5:30PM |
| Friday | 7:30AM - 5:30PM |
| Saturday | 7:00AM - 2:00PM |
| Sunday | Closed |
| you break it we fix it | |
| Monday | 8:00AM - 5:00PM |
| Tuesday | 8:00AM - 5:00PM |
| Wednesday | 8:00AM - 5:00PM |
| Thursday | 8:00AM - 5:00PM |
| Friday | 8:00AM - 5:00PM |
| Saturday | 7:00AM - 2:00PM |
| Sunday | Closed |