At the end of 2018, there is one big date to keep in mind

if you're self-employed or a small business owner and that's December 31st.

That's the deadline for this year's special tax deduction you can get
if you buy a new :

F-150, F-250, F-350, F450, Super Duty Trucks, Transit, Transit Connect,

Expedition, Explorer, or Flex   

Self-employed persons or businesses who use this special deduction are allowed to write off up to $500,000 worth of depreciable assets in the year that they are purchased.

For businesses that do not qualify for Section 179, there is another great tax break, but it expires in 2019.  Bonus Depreciation allows you to deduct 50% of the cost of assets in the year of purchase. This deduction is allowed even if you do NOT have income and has no max amount.  You can use this for an unlimited number of purchases, but the deduction is only allowed for NEW assets.  For used vehicles, this deduction is not allowed, but Section 179 IS allowed.  The bonus depreciation deduction was at the 50% amount in 2017.  In 2018 it will drop to 40% and in 2019 it will drop to 30%.

Limitations

• The vehicle must be used at least 50% for business to qualify.
  
• Depreciation limits will be reduced for personal use if the vehicle is used for business less than 100% of the time.
  
• There are top end deductions for different classes of vehicles. For example, small cars under 6,000 lbs. are capped at $11,060 of depreciation in the first year.*
• SUVs and crossovers with Gross Weight above 6,000-pounds are capped at $25,000.*
• Trucks and vans with no rear passenger seating that are above 6,000-pounds do not have a cap.*
  
• Every major brand of pickup (1/2 ton and up) are over 6,000-pounds for purposes of this deduction.
• There is a $500,000 cap.
• If you purchased more than $2,000,000 in 2017 assets, then this will have the deduction phased out.
• You have to have positive income and not a net loss for the year. 


If you meet these guidelines 

    •    It's a great idea to move those vehicle purchases you are planning, forward to 2017, to take advantage of last minute tax savings.
    •    You must purchase the vehicle by December 31, 2018 to get the write-off on your 2018 taxes.


As always, check with your tax advisor to see what works best for your situation, but if you are doing some year-end planning, a new car might be the most fun way to save on your taxes.

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

If you are looking to take advantage of this extension time is running out so consult Lakewood Ford to get the returns your business deserves. Contact Us Today!  

Purchases - whether paid for in cash or financed - are eligible for tax benefits under Section 179, as long as the vehicle is received by December 31, 2018. *The information provided here is intended as a general overview of the Section 179 Deduction. You should always consult with a tax professional on business tax deductions.