Section 179 Tax Deduction
Jan 4, 2019 – Section 179 is one million dollars for 2019, as stated in H.R.1, aka, The Tax Cuts and Jobs Act. The deduction limit for Section 179 is $1,000,000 for 2020 and beyond, while the limit on equipment purchases remains at $2.5 million.
Further, the bonus depreciation is 100% and has been made retroactive to 9/27/2017. It is good through 2022. The bonus depreciation also now includes used equipment.
See fully updated 2019 Section 179 Calculator to see how this tax deduction affects your company.
News Alert: See the IRS Fact Sheet issued for Section 179
The IRS released Fact sheet FS-2018-9 provides info on Section 179 deductions including temporary 100 percent bonus depreciation, changes to depreciation limitations on vehicles used for business, new treatment of farm equipment, and the recovery period for real property. Read the new IRS Fact sheet here: New Rules and Limitations for Depreciation and Expensing under the Tax Cuts and Jobs Act.
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 $1,020,000 of Section 179 property during 2020.
Section 179 Accelerated Depreciation
Customers can expense up to 100% of new RAM commercial vehicle purchases on 2020 taxes! Purchases must be made by the end of December 2020 to be eligible for 2020 tax benefits.
2020 First-Year Depreciation Limits
Up to 100% Total Deduction per Vehicle
- Ram 1500
- Ram 1500 Classic
- Ram 2500 & 3500
- Ram 3500, 4500, & 5500 Chassis Cab
- Ram ProMaster
- Ram ProMaster City Cargo Van
Up to $18,000 Total Deduction per Vehicle
- Ram ProMaster City Passenger Wagon
- Ram 1500 Crew Cab (5’7” bed)