Operating vehicles as a part of your business means knowing what benefits you can reap at tax time. For example, you might wonder, “Does my Ford Bronco qualify for Section 179 deductions?”
At Folsom Lake Ford, our finance team is ready to help you answer any tax-related questions you have. Let’s explore this important tax deduction and whether your new Ford Bronco may qualify.
What Is Section 179?
Section 179 is a business tax deduction that companies can take for buying depreciable business equipment. This includes vehicles, but also extends to other office equipment and machines. The deduction incentivizes businesses to purchase new technologies that will depreciate over time.
Does My Ford Bronco Qualify for Section 179?
Depending on how your new Ford Bronco is used, it may be eligible for Section 179 tax deductions. To qualify, the vehicle must be used for business purposes at least 50% of the time.
You can claim the full deduction if the vehicle is solely used for your company. Otherwise, you must reduce your deduction based on business use percentage.
Light vs. Heavy vs. Other Vehicles
Section 179 provides different deduction rates for vehicles of various sizes. Vehicles below 6,000 lbs GVWR are considered “light,” between 6,000 and 14,000 lbs considered “heavy,” and over 14,000 lbs considered “other.”
Depending on the trim, the 2023 Ford Bronco has a GVWR of between 5,540 to 6,160 lbs. This means that your Ford Bronco will either qualify as light or heavy. Thus, you should check your model’s GVWR before applying for Section 179 benefits.
Learn More About Section 179 at Folsom Lake Ford
Whether you buy a new Ford Bronco or another Ford vehicle at Folsom Lake Ford, you may be eligible for tax deductions. Contact our finance team in Folsom, CA today to learn about your eligible tax benefits.