Section 179 Tax Break
Section 179 Tax Deduction for Wisconsin Businesses
If you own a business in Wisconsin, Section 179 of the Internal Revenue Code may allow you to deduct the cost of qualifying vehicles, equipment, and software used for business purposes. Rather than depreciating certain assets over multiple years, Section 179 can allow eligible businesses to expense all or a portion of a qualifying purchase during the tax year it is placed into service.
For many small and medium-sized businesses, the Section 179 deduction can provide significant tax savings when purchasing qualifying work trucks, vans, and commercial vehicles. To qualify, the vehicle must generally be used for business purposes more than 50% of the time and meet IRS eligibility requirements.
Section 179 Deduction Limits
Section 179 limits are adjusted periodically by federal tax law. Businesses may be able to deduct a substantial portion of qualifying vehicle and equipment purchases, subject to annual deduction limits, taxable income restrictions, and phase-out thresholds. The amount your business can claim depends on your specific circumstances.
Some important limitations include:
- The deduction generally cannot exceed your business's taxable income for the year.
- The deduction may be reduced when total qualifying purchases exceed IRS phase-out thresholds.
- The vehicle must be placed into service during the tax year in which the deduction is claimed.
- Business use generally must exceed 50% to qualify.
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What Vehicles May Qualify for Section 179?
Many Ford trucks, cargo vans, and commercial vehicles may qualify for Section 179 benefits when used primarily for business purposes. Eligibility is typically based on factors such as vehicle weight, configuration, and business use.
Common Ford models that may qualify include:
- Ford F-150
- Ford Super Duty® F-250
- Ford Super Duty® F-350
- Ford Super Duty® F-450
- Ford Transit® Cargo Van
- Ford Transit® Passenger Van
- Ford Expedition®
- Ford Explorer®
If you're shopping for a business vehicle, our team can help you identify Ford models that may meet Section 179 requirements and connect you with financing options designed for your business needs.
Why Wisconsin Business Owners Choose Benna Ford
At Benna Ford, we proudly serve businesses throughout Superior, Duluth, and the surrounding Northland with a wide selection of new Ford trucks, commercial vehicles, and pre-owned vehicles. Whether you're expanding your fleet or purchasing your first work truck, our experienced sales and finance teams can help you find the right vehicle for your business.
Browse our new Ford inventory, explore our pre-owned vehicles, or contact our team to learn more about available commercial vehicle options.
Disclaimer: This information is provided for general educational purposes only and should not be considered tax, legal, or financial advice. Section 179 rules, deduction limits, vehicle eligibility requirements, and tax laws can change. Please consult a qualified tax professional regarding your specific situation before making any purchasing decisions.