A provision in the US tax code called Section 179 now allows you to deduct anywhere from 50% to 100% of the amount of your purchase price on a qualified vehicle that's used for business purposes. Let's consider the amount you spent on a Ford heavy-duty truck or a Ford Transit cargo van as an example. You may be able to deduct a portion of the amount you spent on that vehicle when you do your taxes the following year. So if you bought an eligible Ford vehicle at Melloy Ford in Los Lunas NM and used it entirely for business purposes in 2023, you may be able to deduct 100% of the purchase price when you do your taxes in 2024.
It's now possible to get the full business tax deduction in a single year
You may be able to deduct the purchase price of a new or a “new to you” Ford vehicle when you put it into business use as an immediate expense deduction. Business owners from Albuquerque and Rio Rancho are allowed to deduct that expense based on the amount of that vehicle’s business use. You can take up to a 100% tax deduction instead of having to deprecate the asset with smaller deductions over a period of time.
An eligible Ford vehicle must be used for business more than 50% of the time
To follow Section 179 guidelines, an eligible vehicle must be used for business purposes more than half the time in order to make the deduction allowable. All a business owner in Edgewood or Belen has to do is multiply the cost of the vehicle by the percentage of its business use to determine the deduction amount. So if you used a Ford heavy-duty truck for business 75% of the time, you can deduct 75% of the purchase price when you do your taxes.
To be eligible, a vehicle must weigh more than 6,000 pounds
As a general rule, Section 179 deductions for tax year 2024 are allowed only for vehicles that weigh in excess of 6,000 pounds. That includes cargo vans, heavy pickups and SUVs used by Isleta businesses. We invite you to take a look at our new inventory to find a qualified Ford vehicle at Melloy Ford and contact your tax professional to find out more.