Section 179 Overview & Benefits

Work trucks are instrumental in various businesses, especially when hauling heavy loads or transporting equipment. A reliable work truck can help improve your business’s efficiency and productivity, but it can also come with a hefty price tag, depending on the type of work truck you purchase.

Thankfully, Section 179 of the IRS tax code can be a powerful tool that allows business owners to deduct the full or partial purchase price of certain vehicles from their taxes. This means that when you purchase a work truck, you may be able to write off all or part of the expense, helping you save money. Let’s explore what Section 179 is and how it can benefit you. Then, we’ll introduce some of the work trucks available at Boucher Auto Group; with several southeastern Wisconsin locations, there’s sure to be one close to you.

What Is Section 179?

Section 179 is part of the U.S. tax code that allows businesses to deduct the cost of certain types of property equipment, including vehicles such as work trucks. Instead of spreading the deduction over several years, Section 179 lets businesses deduct the entire purchase price in the year of purchase. This can be very useful for companies looking to lower their taxable income for the current tax year. Section 179 can also apply to vehicles such as work trucks and vans if they meet certain requirements.

How Does Section 179 Work?

Here’s how Section 179 works:

• Eligibility: Only business purchases are eligible, so you must use the vehicle you purchase for business purposes at least 50% of the time.
• Deduction limit: Businesses can currently deduct up to $1,220,000 of the total cost of qualifying tangible property. That’s not per vehicle, however — that figure represents any and all qualifying business equipment purchases for that year.
• Cost savings: The deduction helps reduce your business’s taxable income, lowering the amount of taxes owed.
• First-year deduction: Section 179 allows you to deduct the entire purchase price the year you buy the vehicle rather than the expense being depreciated over time.

Section 179 Requirements

If you’re interested in offsetting a vehicle purchase with Section 179, here are some requirements you’ll need to fulfill:

• Business use requirement: You’ll need to use the vehicle for business purposes at least 50% of the time. If you’re using it for both personal and business purposes, you’ll only receive a deduction on the amount used for business.
• Purchase date: You must purchase and use the vehicle within the tax year in question.
• Vehicle weight: The IRS divides the list of vehicles that qualify for Section 179 deduction into three groups: light, heavy, and other. The allowable deduction differs for each group and can increase annually to account for inflation. The weight of the vehicle determines the deduction amount.
• Financing options: To qualify for the deduction, you may purchase the vehicle outright or lease/finance it using Section-179-approved financing.

Work Trucks at Our Dealership

If you’re interested in getting a work truck under Section 179, Boucher Auto Group offers a wide variety of work trucks that can meet your various business needs. Here’s a list of trucks our team recommends.

Chevrolet Silverado 6500 HD

The Chevrolet Silverado 6500 HD is a powerhouse designed for businesses that need serious muscle on the job. Here’s what you can expect:

• Performance and engine specs: Equipped with a 6.6L V-8 turbo-diesel engine, the Silverado 6500 HD boasts a maximum gross vehicle weight rating of 23,500 pounds, making it ideal for heavy-duty tasks. This helps with the strong torque and power you may need when towing large equipment or hauling heavy loads.
• Interior features: Despite its rugged exterior, the Silverado 6500 HD offers a comfortable, ergonomic interior design. It features a spacious cabin with advanced controls, a user-friendly touch-screen interface with Apple CarPlay and Android Auto integration, and seating that’s ideal for all-day comfort.
• Tech and safety: Advanced safety features, such as forward-collision alert, lane departure warning, and integrated trailer braking systems, make it a reliable option if you’re concerned about performance and safety on the road.

Ford F-150 Lariat Black Ops

If you’re looking for a work truck that’s both stylish and functional, the Ford F-150 Lariat Black Ops is a good option:

• Performance and engine specs: The F-150 Lariat Black Ops is engineered for speed and endurance, with a 5.0L V-8 engine producing 400 horsepower. It can tow up to 14,000 pounds when properly equipped, making it versatile enough for various work tasks, from transporting materials to towing large equipment.
• Interior features: The Lariat Black Ops has premium leather seats, a large infotainment screen with SYNC 4 technology, and advanced connectivity features such as Apple CarPlay and Android Auto.
• Tech and safety: The F-150 comes equipped with safety features such as Pro Trailer Backup Assist, a 360-degree camera system, and adaptive cruise control. These advanced features make navigating tricky job sites or busy roads much easier and safer.

Ram 2500 Tradesman

The Ram 2500 Tradesman is an affordable, versatile work truck that performs well at various tasks:

• Performance and engine specs: With a 6.4L V-8 engine, the Ram 2500 Tradesman generates 410 horsepower and a towing capacity (with the available 6.7L Cummins Turbo Diesel I-6 engine) of up to 19,990 pounds. It’s built for heavy lifting and is perfect for construction, farming, or other high-demand industries.
• Interior features: The Tradesman has a practical and durable interior, offering comfortable seating, a user-friendly Uconnect infotainment system, and plenty of storage space for tools and equipment.
• Tech and safety: The Ram 2500 comes equipped with safety features such as electronic stability control, hill-start assist, and a trailer sway control system.

Get Your New Work Truck Today

Section 179 can be instrumental if your business needs to invest in a new work truck and reduce its tax liability. Boucher Auto Group carries a large inventory of work trucks, and one is sure to be perfect for you. Explore our full inventory of work trucks and commercial vehicle specials to determine which one is best for your business. Contact us to schedule an appointment, and let our team help you with Section 179 financing today.