Tuesday, November 1, 2011

Section 179 creates economic stimulus in the NW

NW business owners and fleet managers are putting more thought and effort into what and when they purchase vehicles.  The Economic Stimulus Act has created the right time and the right incentives for thousands of business owners and fleet managers.  Oregon Ford Fleet Dealerships are spreading the word about how businesses can benefit from the bonus depreciation tax deduction provided under IRS section 168(k) and the tax deduction allowed under IRS section 179 when a company purchases a eligible vehicle.  Purchases must be made by December 31st 2011.  Both of these tax provisions currently offer businesses a tax deduction equal to 100% of the cost of most new equipment.  In the case of vehicles, the new equipment must have a gross vehicle weight rating over 6,000lbs.  This includes the purchase of qualifying F150 and Super Duty Trucks and or E Series Vans.  Remember the only catch is that you need to make your purchase and put the vehicle into use before December 31st 2011. 
     In addition to the tax deductions and bonus depreciation benefits Ford Motor Company is offering fantastic rebates and special private offers to some businesses.  Contact Gresham Ford Fleet directly to find out if you have a private rebate offer waiting for you.  For instance during the Commercial Truck Month at Ford you may also be eligible for up to $2500 in upfit incentives in addition to other customer cash and financing incentives.  Also consider Ford Commercial Credit especially if you are a small business building your commercial credit.  Everyone in business knows that timing is critical to success and that now is the time to benefit from the Economic Stimulus package.  See Gresham Ford Fleet for complete details and qualifications of rebates.  Gresham Ford is not a tax professional and does suggest that you consult your tax professional before purchase. 
     The benefit of bonus depreciation as referenced above and detailed in IRS section 168 (k) allows a company, like yours, to take a 100% tax deduction for purchases of qualified property purchased and placed into serve after September 8th 2010 and before December 31st 2011.  There is no set dollar limit to the amount of property that can be deducted as long as it is purchased and placed in service during the required time period.  NW business owners have weathered the economic storm and residual downturn but many have put off major purchases of equipment especially vehicles.  These small business owners can now take advantage of Commercial Truck Month incentives and the offer from the IRS thru the Economic Stimulus act. 
     Section 179 of the IRS tax code provides provisions for businesses to take a 100% deduction for the purchase of qualified property that is placed into service.  For tax years beginning on or before December 31, 2011, the deduction is limited to $500,000 or purchased equipment.  This limitation is decreased by one dollar for every dollar the company spends over $2,000,000 on new equipment.