Commercial Tax Savings & Incentives - On The Job

2022 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 $19,200 Total Deduction per Vehicle

  • Ram ProMaster City Passenger Wagon

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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 $1,080,000 of Section 179 property during 2022.Consult your tax professional to determine your vehicle depreciation and tax benefits.

Section 168(K) Temporary 100% Expensing

A Ram truck is generally considered qualified property for purposes of section 168(k) for U.S. federal income tax purposes. This means a taxpayer may elect to treat the cost of any qualified property as an expense allowed as a deduction for the taxable year in which the property is acquired and placed in service.

Consult your tax professional to determine your vehicle depreciation and tax benefits.

Commercial Vehicles Incentives

Select from

EQUIPMENT/UPFIT ALLOWANCE

Get up to $1000 to add equipment or upfit to your commercial vehicle

OR

GRAPHICS ALLOWANCE

Get $500 or $1000 to add your company logo or graphic to your work vehicle

OR

SERVICE ALLOWANCE

Get a 2-year Lube-Oil-Filter service allowance for your gas engine vehicle or a 4-year Lube-Oil-Filter allowance for your diesel engine vehicle


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.)

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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.

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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.

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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.

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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.

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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.

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*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.

  1. Larry H. Miller Dodge Peoria

    8665 W Bell Road
    Peoria, AZ 85382-3707

    • Sales: 8558899734
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