What is Section 179?

The Section 179 tax deduction is a provision in the U.S. tax code that allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. This includes many business-use vehicles, so companies in Clermont and surrounding areas can buy new Ford^® vehicles and save big on taxes.

How much can I deduct in 2024?

For 2024, businesses can deduct up to $1,220,000 in qualifying equipment purchases. The deduction phases out dollar-for-dollar after $3,050,000 in purchases, so it's great for small to medium-sized businesses in the Orlando area.

What vehicles qualify for Section 179?

Many business-use vehicles qualify for the Section 179 deduction. This includes cargo vans, heavy SUVs over 6,000 pounds, pickup trucks with a 6 foot bed and more. Ford models like the F-150^®, Transit^®, and Expedition^® may qualify if used for business.

Does the vehicle have to be new?

No, both new and used vehicles qualify for the Section 179 deduction as long as they are new to your business. So whether you're looking at a brand new Ford F-250^® in Davenport or a used Transit Connect^® in Kissimmee, you can take advantage of this deduction.

What's the "More Than 50 Percent Business-Use" rule?

To qualify for the Section 179 deduction the vehicle must be used for business more than 50% of the time. The deduction amount is then calculated based on the percentage of business use. For example if you buy a $50,000 vehicle and use it 80% for business you can deduct $40,000 under Section 179 (subject to overall deduction limits).