How Section 179 Can Help Your Trucking Company

November 15, 2023

Trucker's Corner

At Trucker’s Corner, you can navigate to topics regarding the trucking industry, lifestyle while on the road, and truck health. International Used Trucks has the information you need to keep you on the Road to Revenue

When you own a business, understanding your write-off options can save you a lot of money in the long run. You could be missing out on some pretty substantial savings if you’re unaware of properly filing certain articles when it’s tax time. If you own a trucking company, you might want to read this until the end to find out about the Section 179 deduction.

What’s Eligible for the Section 179 Deduction? 

To take advantage of IRS Section 179 provisions, you must meet certain criteria. The following list puts it all together:

  • Must have eligible assets (physical property, any type of furniture)
  • If your assets are not tangible, you won’t be allowed to take advantage of the deduction. 
  • Buildings and acreage don’t fall under the deduction. Building-related equipment does, however. Any on-site job materials like HVAC or any type of security components. 
  • The equipment must be in use.
  • You must have recently acquired the items
  • Items must be a regular necessity for your business
  • Qualifying items cannot be purchased from family or close friends. 

The Importance of Section 179 Qualified Financing

If you own a small business that includes trucking as a vital component, the Section 179 deduction can save you quite a substantial amount of money. With this IRS Section 179 write-off, small companies can buy major equipment they may not have had access to before for financial reasons. During the Tax Cuts and Jobs Acts of 2017, IRS Section 179 took on some significant revisions. Owners using Section 179 qualified financing allows you to get certain equipment that’s 100% covered, especially when you combine the Section 179 Deduction with other tax breaks. 

Combining Other Deductions with Section 179 Qualified Financing

Did you know that IRS Section 179 Deduction covers new and used equipment? In addition, new legislation has passed that not only includes physical items but even software. This deduction allows you to write off the complete cost of these items as an expense instead of listing them as an asset. 

Deduction Limits

You should know that there is a limit on the price of the equipment you can write off. In previous years, the cap was $1,050,000. Even though there’s still a limit, the good news is it’s been increased to $2.5 million. All you need to know is the equipment you purchased, and request Form 4562 to log all the information. The process couldn’t get any easier for commercial truck owners! 

If you’re a commercial truck owner and just purchased equipment and need to add to your fleet, we have everything you need. We offer our customers low-interest rates on commercial trucks and an excellent trade-in program. For more information, contact us, and we can help.

And More

International Used Truck Center 41.776180, -88.200918.