Benefits of Section 179
At Broadway Ford Truck Sales, we know every dollar matters when you are investing in your business. That is why Section 179 of the Internal Revenue Code can be a powerful tool. This tax benefit allows businesses to immediately deduct the cost of qualifying equipment, vehicles, and software rather than depreciating them over several years.
For the 2025 tax year, several Ford vehicles, including many F-Series trucks, Transit vans, and the Expedition, may qualify for a Section 179 tax deduction. Eligibility depends on meeting specific IRS criteria, primarily a Gross Vehicle Weight Rating (GVWR) of over 6,000 pounds and more than 50 percent business use.
At Broadway Ford Truck Sales, we know every dollar matters when you are investing in your business. That is why Section 179 of the Internal Revenue Code can be a powerful tool. This tax benefit allows businesses to immediately deduct the cost of qualifying equipment, vehicles, and software rather than depreciating them over several years.
For the 2025 tax year, several Ford vehicles, including many F-Series trucks, Transit vans, and the Expedition, may qualify for a Section 179 tax deduction. Eligibility depends on meeting specific IRS criteria, primarily a Gross Vehicle Weight Rating (GVWR) of over 6,000 pounds and more than 50 percent business use.
2025 Section 179 deduction rules
Based on projections and recent tax guidance, here are the key limits for the 2025 tax year:
- Max deduction: $1,250,000
- Phase out threshold: The deduction begins to be reduced if you purchase more than $3,130,000 in qualifying assets.
- Bonus depreciation: The rate for 2025 is 40 percent.
Qualifying Ford models
Many Ford models have a high enough GVWR to potentially qualify for a significant Section 179 deduction. Common qualifying models include:
- F-150 and F-150 Lightning (many configurations)
- Super Duty trucks (F-250, F-350, and up)
- Expedition and Expedition MAX
- Transit Cargo and Passenger Vans
Deduction limits based on vehicle type
The specific deduction amount for a vehicle depends on its weight class and intended use:
- Heavy SUVs and trucks (6,001 to 14,000 lbs GVWR): These vehicles have a special limit of $31,300 for the Section 179 deduction in 2025. Any remaining cost can then be depreciated, including using the 40 percent bonus depreciation.
- Vocational or commercial vehicles (typically over 14,000 lbs GVWR): Work only vehicles, such as certain heavy duty trucks and modified cargo vans, are not subject to the $31,300 cap and may be eligible for the full Section 179 deduction up to $1.25 million, subject to overall spending caps.
- Vehicles with a cargo bed at least six feet long: The SUV limitation does not apply to these vehicles, allowing for a potentially larger deduction.
Requirements for the deduction
To qualify for any Section 179 deduction, your vehicle must meet the following criteria:
- Placed in service: You must purchase or finance the vehicle and place it in service for business use by December 31, 2025.
- More than 50 percent business use: The vehicle must be used for business purposes more than half the time. If it is used for personal errands, keep detailed records such as a mileage log, and deduct only the business use percentage of the cost.
- Business title: It is recommended to title the vehicle in your company name for easier IRS compliance.
At Broadway Ford Truck Sales, we are here to help you maximize the value of your investment. Explore our lineup of commercial trucks and see how Section 179 can work for your business today.
Call Us Today at 314-241-9140