Tax Savings Header

Section 179 Tax Savings

Many Business owners may be eligible to write-off up to 100% of the purchase cost on their next new Ford purchase.

Take advantage of these tax deductions for your small business when you purchase a new Ford vehicle by December 31st!

TAX BENEFIT EXAMPLES FOR QUALIFYING BUSINESSES

TAX TREATMENTUp to 100% of the purchase cost in the first year ¹,² (plus any remaining basis using MACRS method)Up to $25,000 of the purchase cost in the first year ¹,² (plus any remaining basis using MACRS method)Up to $11,560 in the first year³ (plus any remaining basis using MACRS method)Up to $11,160 in the first year³ (plus any remaining basis using MACRS method)
APPLIES TOTrucks and Cargo Vans over 6,000 lbs. GVWRPassenger Trucks/Vans and SUVs over 6,000 lbs. GVWRTrucks and Cargo Vans under 6,000 lbs. GVWRPassenger Automobiles under 6,000 lbs. GVWR
ELIGIBLE NEW FORD VEHICLESF-150 (6.5-ft. or 8-ft.bed) F-250/F-350 Super Duty® Transit VanExpedition F-150 SuperCrew® (5.5-ft. or 6.5-ft. bed) Transit WagonTransit Connect Van Transit Connect WagonEdge, Flex, Escape, Focus, Explorer, Fusion, Fiesta and Taurus

Important Information

Hurry! You must act by December 31, 2020 to get your deduction for the 2020 tax year

Q: What is IRS Section 179? How can it help my bottom line?

A: 179 is the current IRS tax code that allows you to buy qualifying Ford vehicles and deduct up to the full purchase price (including any amount financed) from your gross taxable income if purchased before December 31, 2020. That means that if you buy a piece of qualifying equipment and products, you may be able to write off up to the FULL PURCHASE PRICE from your gross taxable income this year!

Q: Does the date of my purchase have an impact on the Section 179 deduction?

A: Yes, to qualify for the Section 179 tax deduction for the 2020 tax year, your Ford vehicle must be purchased or leased and placed into service by December 31, 2020.

Q: Which vehicles qualify for the greatest IRS tax savings?

A: Trucks with a GVWR greater than 6,000 lbs. and a bed length of at least six feet (i.e., Ford F-150/F-250/F-350) qualify for the maximum first-year depreciation deduction of up to the FULL PURCHASE PRICE. SUVs, including trucks, with a bed length of less than six feet and a GVWR greater than 6,000 lbs. (i.e., Ford F-150 SuperCrew 5 1/2 ft. bed, Explorer, Expedition) qualify for a maximum first-year depreciation deduction of up to the first $25,000 of the full purchase price plus 60% depreciation of any remaining balance.

Q: What about smaller trucks/Vans/SUVs?

A: Vehicles of less than 6,000 lbs. GVWR (built on a truck chassis), such as the Transit Connect, may still qualify under current bonus depreciation for up to $11,560 per vehicle in the first year. Passenger automobiles under 6,000 lbs. GVWR also may qualify for up to $11,160 in depreciation.

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 about the Section 179 expense write-off or other business vehicle expense write-offs, you should consult your tax advisor for complete rules applicable to your transaction and visit the Internal Revenue Website at www.irs.gov.

  1. This analysis applies only to vehicles placed in service in the United States after December 31, 2015 and by December 31, 2020 with no written binding contract for acquisition in effect before January 1, 2020. The aggregate deduction of $500,000 under Internal Revenue Code Section 179 is most beneficial to small businesses that place in service less than $2,000,000 of "Section 179 property" during the year (vehicles and other business property)
  2. IRC Section 280F(d)(7(B) requires that the limitation under IRC Section 280F(a)(1) be adjusted annually, based on the CPI automobile component for October of the preceding year. The IRS officially announced the Section 280F depreciation limits in Revenue Procedure 2017-23. The passenger automobile imitation is $11,160, the trucks/vans under 6,000 lbs. limitation is $11,560. SUV's over 6,000 pounds GVWR are limited to a deduction of $25,000 under Section 179(b)(5) with the remaining basis in the vehicle depreciated under normal MACRS methods. The expensing restrictions under Section 280F do not apply to vehicles that are considered to be "qualified non-personal use vehicles" (QNUVs). A QNUV is generally a vehicle that, by virtue of its nature or design, is not likely to be used more than a de minimis amount for personal purposes. For more information, see Income Tax Reg., Sec. 1.280F-6(c)(3)(iii), Income Tax Reg. Sec. 1.274-5T(k), and Revenue Ruling 86-97, and contact your tax advisor for details. Consult your tax advisor as to the proper tax treatment of all business-vehicle purchases
  3. All prices exclude taxes, title and registration and document fees. Not all buyers will qualify for all offers. Above total savings are examples of specific vehicles; total savings varies by vehicle. (Individual Vehicle Incentives and Offers go here) Available at participating dealers only. For all offers, take new retail delivery from dealer stock by 12/31/2020. See dealer qualifications and complete details. All incentives were correct at the time of printing and are subject to change at any time. Models shown may not represent actual vehicle description listed, and therefore may include additional features and/or accessories.