All posts by TruckMax Marketing

Getting a Tax Deduction for Buying a commercial vehicle.

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Posted in Truck Financing

You can get a tax benefit from buying a new or “new to you” car or truck for your business by taking a section 179 deduction. This special deduction allows you to deduct a big part of the entire cost of the vehicle in the first year you use it if you are using it primarily for business purposes. 

A section 179 deduction is a special kind of tax deduction that businesses can take to reduce expenses. You can elect to take this deduction on the cost of certain types of business property. including business vehicles, instead of (or in addition to) recovering the cost by depreciating the property.

To qualify for a section 179 deduction for a business vehicle, it must be bought and put into service during the year in which you are applying for the section 179 deduction. Being placed in service means that a business asset is ready and available for specific use in a business or for the production of income.

In addition, the vehicle:

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Want to know the details?

The most important qualification for section 179 deduction purposes is business use. You can only take a section 179 deduction for vehicles used more than 50% of the time for business purposes. The deduction is limited to the amount of use and can’t be taken on personal use.

Section 179 deductions work like depreciation. The purpose of depreciation is to spread the expense (and tax deductions) of owning a business asset like a car or truck over the life of that asset.

Normally, depreciation is deducted as an expense to the business over the life of the equipment or vehicle. But a section 179 deduction allows you to take more of the expense of the purchase in the first year.

There are two limits on the amount you can elect to deduction under section 179.

Dollar Limits. The total amount you can take as section 179 deductions for most property (including vehicles) placed in service in a specific year can’t be more than $1 million. In other words, all section 179 deductions for all business property for a year can’t be greater than $1 million. The dollar amount is adjusted each year for inflation. There is also a “phase-out” limit of $2.5 million.

in addition to the general dollar limits, the maximum section 179 expense deduction for sport utility vehicles placed in service in tax years beginning in 2019 is $25,500, based on a specific IRS description of the vehicle type.

Business Income Limit. After you apply the dollar limit, the total cost you can deduct each year – including section 179 deductions – is limited to the taxable income from your business during that year. In other words, you can’t use a section 179 deduction to cause your business to have a loss. If you can’t take all or part of a section 179 deduction in one year, you can carry it over to the next year.

The calculation for this limit is complicated and it’s different for each business. See the instructions for IRS Publication 946 for type of vehicle and further details.

How to Take the Deduction

You or your tax preparer will need to complete IRS Form 4562 Depreciation and Amortization. Follow the instructions for Part I.

Key Requirements and Restrictions

Contact us to learn more about what your chances are by using Section 179 for your business.

Isuzu Updates F-Series, Adds Class 7 Model

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Posted in Isuzu Trucks

Isuzu Commercial Truck of America announced the Cummins B6.7 diesel engine will now be featured in the new 2022 Isuzu F-Series trucks for the U.S. and Canadian markets. This is the first product to come to market globally from the Isuzu Cummins Powertrain Partnership (ICPP) between Isuzu Motors Limited and Cummins Inc. that was formed in 2019.

The 2022 F-Series will be available in two medium-duty models – the Class 6 FTR (25,950-pound GVWR) and the Class 7 FVR (33,000-pound GVWR). Additionally, the lineup will include a de-rated Class 6 FVR. A total of eight wheelbases will be available for the FTR and FVR models.

The low-cab forward’s larger cab-to-axle space provides the Isuzu F-Series more cargo capacity versus conventional cab competitors with a comparable wheelbase, Isuzu officials said in a press release. This gives customers more versatility with their body application choices to accommodate heavier or more spacious cargo loads.

The FTR and FVR offer a 50-degree inner wheel cut that gives the Isuzu F-Series turning diameters between 43.7-foot (152-inch WB) and 65-foot (248-inch WB). Greater visibility is made possible by Isuzu’s low cab forward-designed cab and new LED headlamps, company officials said. The new interior design has dual-tone trim and enhanced seating.

The Cummins B6.7 is mated to an automatic 6-speed Allison RDS Transmission (2500 Series). With 260 hp and 660 lb-ft of torque, this is the highest horsepower and torque available from the Cummins B6.7.

This power increase in the Isuzu F-Series will easily move heavier payloads through today’s urban environments and over the road between distribution centers, according to the truckmaker.