Buy Now and Take Advantage of Tax Savings
Are you thinking about purchasing a commercial vehicle in the current tax year? If you purchase a new or used commercial vehicle from Southport Truck Group before the end of the year, you can receive a tax benefit for your business!
Thanks to new guidelines under the IRS Section 179 tax code, many small businesses that invest in a qualifying Freightliner Sprinter van can take deductions up to $25,900 - saving you up to $5,439! This deduction can get you a top of the line commercial vehicle with bottom-line tax savings.
What Is Section 179?
Section 179 of the IRS tax code allows business owners to deduct the cost of qualifying a Freightliner Sprinter van purchased or financed during the current tax year. If you buy or lease a qualifying vehicle, you can deduct the full purchase price (including the amount financed) from your gross income. An incentive created by the U.S. government, it encourages businesses to buy equipment and invest in themselves.
Today, Section 179 is more beneficial to small businesses than ever as it helps to provide much-needed tax relief. It is one of the few government incentives available and included in many of the recent Stimulus Acts and Congressional Tax Bills.
Does My Vehicle Qualify?
Your vehicle may qualify for Section 179 if:
As a business owner, you purchased or financed a qualifying new or used commercial vehicle during the current tax year.
The vehicle was put into service during the 2020 calendar year.
The vehicle is used for commercial purposes over 50% of the time.
The vehicle includes a fully-enclosed driver’s compartment/cargo area, no seating at all behind the driver’s seat, and (no body section protruding more than 30 inches ahead of the leading edge of the windshield. In other words, a classic cargo van.
The total purchase cost was less than $3,500,000
How Does Section 179 Work?
When your business purchased a vehicle in previous years, you wrote off a certain percentage each year through depreciation. For example, if you spent $40,000 on a Sprinter van, you would be able to write off $8,000 per year over five years. Section 179 allows you to take the deprecation all once by writing off the full purchase price of the vehicle for the current tax year.
Section 179 has helped the economy in general, but especially small businesses as they can purchase a Sprinter right now instead of waiting.
To compute your potential savings, go to the official Section 179 calculator.
What’s the Catch?
To qualify for the Section 179 deduction, your Sprinter van must be purchased and placed into service during the 2020 calendar year. The qualifying vehicle must be used for commercial purposes at least 50% of the time during its first year of service. If used for both personal and commercial use, you would be able to deduct the percentage used for business. For example, if you bought a Sprinter van for $50,000 and used it commercially 75% of the time, you would be able to deduct $35,000 on your 2020 taxes.
If your business purchases and/or finances less than $2,590,000 in vehicle costs using the 2020 tax year, you should qualify for the Section 179 deduction.
Before committing to purchasing or financing a Sprinter van, we encourage you to contact your tax advisor regarding the 2020 Section 179 deduction and specific qualification details.
Southport Truck Group is an authorized Freightliner Sprinter dealership in Southwest Florida. Whether you're looking for an excellent value on a new or used vehicle, our expert sales and financing staff are here for you. Let us help you find the right Sprinter Van for your business needs! Call us today at 813-262-0890 (Tampa) / 239-210-9450 (Fort Myers) or stop by our showroom.
Sources
https://www.freightlinersprinterusa.com/en/section-179-tax-deductions
https://southporttruckgroup.blogspot.com/2019/10/buy-now-and-save.html
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