Section 165(k) and Section 179 Tax Deductions

Now is the time to purchase the additional vehicle(s) needed for your business. 100% expensing for federal income Tax Purposes may be available on your next Ram Truck purchase.

section 179

 

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.

 

section 168k tax credit

 

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 $1,040,000 of Section 179 property during 2020.

 

section 179 tax deduction

 

2020 FIRST YEAR DEPRECIATION LIMITS

 

section 179 tax benefit

Up to 100% Total Deduction per Vehicle

  • Ram 1500
  • Ram 2500 & 3500
  • Ram 3500, 4500 & 5500 Chassis Cab
  • Ram ProMaster
  • Ram ProMaster City Cargo Van

 

Up to $18,100 Total Deduction per Vehicle

  • Ram ProMaster City Passenger Wagon

 

Example:

$50,000 Ram truck purchase is expensed at 100% in year one. If the business’s tax bracket is 30%, it could save that business $15,000 on owed federal taxes. This deduction works with financing and leases.

 

 

Consult your tax professional to determine your vehicle depreciation and tax benefits.