Section 179 is the current IRS tax code that allows businesses to buy qualifying Ford vehicles and deduct up to the full purchase price (including any amount financed) from gross taxable income if purchased before December 31, 2016. If a business purchases a piece of qualifying equipment and products, the business may be able to write off up to the FULL PURCHASE PRICE from gross taxable income this year!
Trucks with a GVWR greater than 6,000 lbs. and a bed length of at least six feet (i.e., Ford F-150/F-250/F-350) qualify for the maximum first-year depreciation deduction of up to the FULL PURCHASE PRICE. SUVs, included trucks, with a bed length of less than six feet and a GVWR greater than 6,000 lbs. (i.e., Ford F-150 Super Crew® 5 ½ ft. bed, Explorer, Expedition) qualify for a maximum first-year depreciation deduction of up to the first $25,000 of the full purchase price plus 60% depreciation of any remaining balance. Vehicles of less than 6,000 lbs. GVWR (built on a truck chassis), such as the Transit Connect, may still qualify under current bonus depreciation for up to $11,560 per vehicle in the first year. Passenger automobiles under 6,000 lbs. GVWR also may qualify for up to $11,160 in depreciation.
These vehicles must also be used for business at least 50% of the time. Depreciation limits will be reduced for personal use if the vehicle is used for business less than 100% of the time.