The 2013 tax year is coming to an end quickly! For business owners and farmers, questions about Section 179 will be directed toward their accountants to seek advice on how to reduce their tax liability for the year. Using Section 179 will be an attractive option for them during this tax year. The purchase of certain new capital equipment can help them reduce their taxes for the year.
Section 179 allows businesses that invest in new equipment to be able to write off up to 100% of these purchases on their 2013 IRS tax returns. Normally, businesses spread these deductions over several years. But now, the tax benefits provided allow many businesses to write off qualifying new equipment in the first year it is placed in service.
Some of the capital goods that can be bought for this benefit are a new truck or van. These vehicles have to be over 6,000 pounds GVWR. Such vehicles that fall into this category include the Ford F-150, F-250 Super Duty, F-350 Super Duty, E-Series Cargo Van and Expedition.
The limits for Section 179 are as follows for 2013:
The 2013 Deduction Limit is $500,000
The 2013 Limit on Capital Purchases is $2,000,000
The 2013 Bonus Depreciation is 50%
All indications are that the Section 179 deduction limitation will be reduced to only $25,000 and any bonus depreciation deduction will be eliminated for 2014. So December 31, 2013 is just around the corner.
The combination of the tax benefit plus the incentives and rebates that are available for these vehicles make it a very attractive opportunity for any business owner or farmer to purchase a vehicle. It is strongly suggested that you contact your accounting professional to get the best advice for utilizing this tax benefit before you visit with us. Here at Bob Boland Ford, we would be glad to answer any questions about the vehicles that are eligible for this tax break.