BOOST YOUR BUSINESS. LOWER YOUR TAX BILL.

Expense up to 100% of your RAM commercial vehicle purchase in the first year.

Now is the time to purchase the additional vehicle or vehicles needed for your business! 100% expensing for Federal income Tax Purposes may be available on your next Ram Truck purchase.

TAX BENEFITS: ONE MORE WAY OUR TRUCKS AND VANS DELIVER.

SECTION 179 FIRST-YEAR EXPENSING

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 $1,050,000 of Section 179 property during 2021.

Consult your tax professional to determine your vehicle depreciation and tax benefits, and talk to us about your next RAM commercial vehicle purchase!

2021 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
Ram 1500 Crew Cab (5’7’’bed)

Up to $18,100 Total Deduction per Vehicle

Ram ProMaster City Passenger Wagon

Shop RAM Vehicles

Frequently Asked Questions About The Section 179 Tax Deductions For Businesses

Q. What is the Section 179 deduction?

A. Section 179 of the IRS Tax Code allows a business to deduct, for the current tax year, the full purchase price of financed or leased equipment and off-the-shelf software that qualifies for the deduction. The equipment financed, leased or purchased has to be within the specified dollar limits of Section 179, and the equipment must be placed into service in the same tax year that the deduction is being taken (for example, the equipment must be put into service between January 1st and December 31st of the year the deduction is to be taken.)

Q. What's the difference between Section 179 and Bonus Depreciation?

A. The most important difference is both new and used equipment qualify for Section 179 Deduction, while Bonus Depreciation covers new equipment only. Bonus Depreciation is useful to very large businesses spending more than whatever Section 179's spending limit is for that year. Also, businesses with a net loss in a given tax year qualify to carry-forward the Bonus Depreciation to a future year. When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation - unless the business has no taxable profit in the given tax year.

Q. Can I lease (or finance) equipment and take the Section 179 Deduction?

A. Absolutely. In fact, this is a very effective strategy, as the deduction you take may actually exceed the total loan or lease payments you make for the year.

Q. How do I know if the property I am purchasing or leasing qualifies for the Section 179 Deduction?

A. Most vehicles and equipment that businesses purchase or lease will qualify for the deduction. Please review the list of equipment that qualifies for the Section 179 Deduction in the chart below.

Q. How much can you deduct?

A. The amount you can deduct is generally equal to the purchase price of qualifying property up to $25,000. There are some limitations, including a $25,000 limit on the amount a small business owner can elect to deduct for the purchase of certain sports utility vehicles. There is also a limitation for businesses that purchase more than $200,000 in qualified equipment. The IRS website has a more detailed explanation of deduction limits.

Q. Does the date of my purchase have an impact on the Section 179 Deduction?

A. Yes. To qualify for the Section 179 deduction for any given tax year, the equipment must be purchased or leased and placed into service between January 1 and December 31 of that year.

*The information provided here is intended as a general overview of the Section 179 Deduction. You should always consult with a tax professional on business tax deductions.

Questions?

Call Us: (623) 815-2243

* Indicates a required field

By providing your information or texting and calling us directly, you agree to receive manual, automated and pre-recorded texts, emails, and phone calls from Larry H. Miller Dodge Ram Peoria, its parent company Asbury Automotive, and all affiliates including our manufacturer and distributor partners. These informational and marketing communications may be powered by Artificial Intelligence, tailored to give you the most guest-centric experience possible. Messages and data rates may apply.

We offer a variety of reasonable ways to opt out or unsubscribe from all communications including an opt-out form on our website. You can find this form in the navigation under the “About Us” section labeled “Unsubscribe”, at the bottom of the homepage, or via our privacy policy page.

For more information, please visit our website privacy policy page or email us at privacy@asburyauto.com.

Section 179 Tax Deductions For Businesses