Section 179 Tax Deduction for Ford Vehicles

Are you interested in adding a new Ford to your business’s fleet of vehicles? Our team at Germain Ford of Sidney is eager to introduce you to Sections 179 and 168(K) of the current IRS tax code. Eligible vehicles that have a gross vehicle weight rating (GVWR) that exceeds 6,000 pounds could qualify for full depreciation during the first year of ownership when used solely for business purposes. This creates the potential for saving your business thousands of dollars and significantly reducing your tax liability. You’ll find a complete breakdown of additional details related to Section 179 listed below in addition to a list of current Ford vehicles that may qualify.

REMINDER: If you have any questions, be sure to contact your tax professional for exact recommendations and rules related to Section 179 and vehicle eligibility.

Section 179 of the IRS tax code allows businesses to deduct the price of qualifying equipment, such as vehicles, purchased or financed during the tax year. The Internal Revenue Service breaks down the list of vehicles that qualify for Section 179 deduction into three primary groups: Light, Heavy, and Other.

For the 2024 tax year, Section 179 allows for a maximum depreciation of $30,500 for “Heavy” vehicles in the current tax year, provided the vehicle is bought and put into service before January 1, 2025, and also meets certain other conditions below:

• The vehicle can be either new or used; however, it must be purchased in an “arm’s-length” transaction that has been financed with qualified loans and leases and the title of the vehicle must be in the company’s name and not in the name of the company owner.
• At least 50% of the time, the vehicle should be used for business purposes and if the vehicle is not used completely for business purposes, 100% of the time, then there is a reduction of depreciation limits by the corresponding percentage of personal usage.
• You can claim the Section 179 deduction only in the tax year in which the vehicle has been put into service i.e. when the vehicle is ready and available, although you are not using the vehicle.
• Also, a vehicle that has been used for personal purposes first does not qualify for the Section 179 deduction if its purpose is changed to business use in a later year.

NOTE: Individual tax situations may vary. Please consult your tax advisor for complete details on rules applicable to your business.

¹Individual tax situations may vary. The information presented was accurate at time of publishing. Federal rules and tax guidelines are subject to change. Consult your tax advisor for complete details on rules applicable to your business.

²Comparisons based on Section 179 and 168(k) of the Internal Revenue Code, which allows for additional first year depreciation for eligible vehicles and reflects figures for owners who purchase vehicles for 100 percent business use and place vehicles in service by January 1, 2025.

³Luxury car depreciation can continue year two at $18,000, year three at $10,800, and subsequent years at $6,460 until the vehicle is fully depreciated or sold.

⁴With Gross Vehicle Weight Ratings (GVWR) of more than 6,000 pounds, these Ford models are classified as “heavy SUVs.” Gross Vehicle Weight Rating (GVWR) is the manufacturer’s rating of the vehicle’s maximum weight when fully loaded with people and cargo.

⁵Comparisons based on Section 179 and 168(k) of the Internal Revenue Code, which allows for additional first year depreciation for eligible vehicles and reflects figures for owners who purchase vehicles for 100 percent business use and place vehicles in service by January 1, 2025.