Save Big Before the End of the Year!
Are you aware of the Section 179
deduction for vehicle purchases? Thanks to the Tax Cuts and Jobs Act of 2017,
this special deduction was created to encourage businesses to acquire equipment
and invest in themselves. Section 179 allows businesses to deduct a large
portion of the purchase price of a new or “new to you” commercial vehicle if
it’s used primarily for business purposes.
With an incentive like that, why wouldn’t
you take advantage of these tax savings in 2019?
Taking advantage of this incentive is
easier than you think. Section 179 of the IRS tax code allows your business to
deduct the full purchase price of a vehicle (provided the price is under $2.5
million) if it is purchased or financed in 2019. How does this help your
business and your bottom line? It accelerates the vehicle’s depreciation value
and enables you to claim the cost of purchase during the first year of
ownership, resulting in larger tax savings.
As with any tax incentive, there are
stipulations when purchasing a vehicle under the Section 179 deduction. If you
plan to claim the deduction in 2019, the vehicle must be purchased and put into
circulation this calendar year. The vehicle must also be used commercially at
least 50% of the time, and the tax deduction is limited to that percentage. If
your vehicle’s purchase price is $60,000 and it’s used for business purposes
75% of the time, the maximum deduction would be $45,000.
But why not make the most of your
purchasing power? Consider buying a “new to you” vehicle instead of the newest
model for even greater cost savings. In general, a used vehicle offers the same
amount of functionally for a fraction of a new vehicle cost. Negotiating your
purchase price and financing terms is another way to save money. If you’re like
a majority of business owners, chances are at least part of the vehicle
purchase will be financed. Comparison shop financial packages offered by our
in-house financing and your financial institution to ensure the best solution
for your business.
By taking advantage of the Section 179
deduction along with some old-fashioned research, your business can reap
financial benefits in 2019 and beyond.
Southport
Truck Group is
an authorized Freightliner Sprinter dealership in Southwest Florida. If you’re in the market for a new or used
vehicle at a great price, our expert sales and financing staff are here to find
the perfect Sprinter Van for your business needs! Call us today at 877-918-7885
(Tampa) / 239-210-9450 (Fort Myers) or stop by our showroom.
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