CHECK OUT THE NEW SECTION 179 GUIDELINES ANNOUNCED FOR 2016!
Thanks to Section 179 of the IRS tax code, many businesses that invest up to $500,000 in new equipment, including qualifying vehicles, will be able to write off up to 100% of these purchases on their 2016 IRS tax returns.
IS THERE A CATCH?
The qualifying vehicle must be used at least 50% for business, based on mileage, in the first year placed in service. So if they choose to use it for both personal and business use, the cost eligible deduction would be the percentage used for business. Please note that the Section 179 deduction would be reduced, dollar for dollar, once their equipment purchases exceed $2,000,000 in 2016.
WHAT"S THE URGENCY?
For the 2016 tax year, the qualifying vehicle must be purchased and placed into service by December 31,2016.
TAX WRITE-OFF EXAMPLES FOR QUALIFYING SMALL BUSINESSES
NOTE: The information supplied here is provided by your local Ford Dealer as a public service to its customers. It should not be construed as tax advice or as a promise of potential tax savings or reduced tax liability. Individual tax situations may vary. Federal rules and tax guidelines are subject to change. For more information prior to your transaction, please consult your tax professional and visit the Internal Revenue Website at www.irs.gov.
AGAIN, TO HELP WITH 2016 TAXES, DECEMBER 31, 2016 IS THE DEADLINE.