The years seem to fly by faster and faster, and 2017 is no exception! If you are planning to add a new truck to your fleet but haven’t got around it to making the addition yet, now’s the time to prioritize. Before the year ends (which is sooner than we all might care to admit), be sure to take advantage of the tax advantages of equipment purchase deductions.
The Section 179 Deduction of the IRS tax code currently allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. Which means if you are planning to buy a new truck, your equipment purchase deduction could be deducted from your annual gross savings. It makes perfect sense to take advantage of this deduction before the close of the year, especially if you were planning to purchase new vehicles anyway.
Be sure to consider these helpful tips when purchasing your next truck to optimize the equipment purchase deduction on your 2017 taxes:
- You must be profitable to claim the Section 179 deduction. The IRS tax code states that the business taking this deduction must have taxable income. In other words, the deduction cannot reduce taxable income below zero.
- There is a maximum amount. Your allowable equipment purchase deduction is currently maxed at $500,000.
- It could have future tax implications. Taking a section 179 deduction on your new truck could remove the option to use depreciation for the new truck in future years. This could be relevant if your business is expecting a large growth period in the future.
- Work with a professional. For both managing your company’s taxes and assistance with your truck purchases, a professional can help you make the best decisions for your business.
Wiers Fleet Partners may not do your taxes for you, but the team can certainly help you find the right addition to your fleet. Wiers has a partnership with top quality truck manufacturer, International Trucking that spans over five decades. Our knowledge and insight can help you find exactly what you need in a single purchase or an entire fleet, all at the lowest possible cost of ownership. Rely on Wiers for assistance with your purchase and well beyond. Our goal is to craft a true partnership that starts day one. We’re standing by to assist you with your 2017 equipment purchase deduction planning and so much more. Get started today!