Don't Miss Out!
100% expensing for Federal Income Tax Purposes may be available on your next Ram Truck purchase.

SECTION 168(k)
TEMPORARY
100-PERCENT EXPENSING

A Ram truck is generally considered qualified property for purposes of section 168(k) for U.S. Federal Income Tax purposes. This means a taxpayer may elect to treat the cost of any qualified property as an expense allowed as a deduction for the taxable year in which the property is acquired and placed in service. Consult your tax professional to determine your vehicle depreciation and tax benefits.

SECTION 179
FIRST-YEAR
EXPENSING

A Ram truck is generally considered Section 179 property for U.S. Federal Income Tax purposes.

This means a taxpayer may elect to treat the cost of any Section 179 property as an expense and allowed as a deduction for the taxable year in which the property is acquired and placed in service. A qualifying business may expense up to $1,000,000 of Section 179 property during 2018. Consult your tax professional to determine your vehicle depreciation and tax benefits.

The "Protecting Americans from Tax Hikes Act of 2015" (PATH Act) expanded the Section 179 deduction limit in 2017 to $500,000. Read the summary from the Ways and Means committee here. In 2018, the limit was upped to $1,000,000.

50% Bonus Depreciation will be extended through 2019. Businesses of all sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2016, 2017 and 2018. Then bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019.

Section 179 can provide you with significant tax relief but equipment and software must be financed and in place by midnight December 31, 2018.

GOT QUESTIONS? (888) 450-0592

GOT QUESTIONS? (888) 450-0592

FREQUENTLY ASKED QUESTIONS

What is the Section 179 Deduction?

A. Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It's an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.

Which property qualifies under Section 179?

A. Most business equipment qualifies for the Section 179 deduction. This includes tangible goods like vehicles, machinery, computers, software, and office furniture. The IRS website has a full list of equipment that qualifies for the Section 179 Tax Deduction. To qualify more than 50% of the property's use must be in the service of a trade or business.

How much can you deduct?

A. When your business buys certain items of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example).

Now, while it's true that this is better than no write-off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.

In fact, if a business could write off the entire amount, they might add more equipment this year instead of waiting over the next few years. That's the whole purpose behind Section 179 - to motivate the American economy (and your business) to move in a positive direction. For most small businesses, the entire cost can be written-off on the 2017 tax return (up to $1,000,000).

What are the limits of Section 179?

A. Section 179 does come with limits - there are caps to the total amount written off ($1,000,000 in 2018), and limits to the total amount of the equipment purchased ($2,500,000 in 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.