About The Section 179 Tax Deduction

BUY A NEW FORD &

GET A BIG WRITE‑OFF

Thanks to new guidelines under the IRS Section 179 tax code, many small businesses that invest in new equipment can now write off up to $1,080,000 of these purchases on their 2022 IRS tax returns. Normally, businesses spread these deductions over several years. But now, with the tax benefits provided under IRS Section 179, many small businesses can write off up to the entire purchase cost of one or more qualifying new Ford trucks or vans. Again, that's up to $1,080,000 worth, all in the first year they're placed in service.

TAX TREATMENT:	APPLIES TO:	ELIGIBLE VEHICLES:
Up to 100% of the purchase cost in the first year*	Trucks and Cargo Vans over 6,000 lbs. GVWR	F‑150 (6.5‑ft. or 8‑ft.bed) F‑250 Super Duty F‑350 Super Duty F‑450 Super Duty Transit Van
Up to $25,000 of the purchase cost in the first year*	Passenger Trucks/Vans and SUVs over 6,000 lbs. GVWR	Expedition F-150 SuperCrew (5.5‑ft. or 6.5‑ft. bed) Transit Wagon
Up to $11,560 in the first year*	Trucks and Cargo Vans under 6,000 lbs. GVWR	Transit Connect Van Transit Connect Wagon
Up to $11,160 in the first year*	Passenger Automobiles under 6,000 lbs. GVWR	Edge Explorer Escape EcoSport

Applies To: Trucks and Cargo Vans over 6,000 lbs. GVWR

Eligible Vehicles: F‑150 (6.5‑ft. or 8‑ft.bed), F‑250/F‑350 Super Duty Transit Van

Applies To: Passenger Trucks/Vans and SUVs over 6,000 lbs. GVWR

Eligible Vehicles: Expedition, F‑150 SuperCrew (5.5‑ft. or 6.5‑ft. bed), Transit Wagon

Applies To: Trucks and Cargo Vans under 6,000 lbs. GVWR

Eligible Vehicles: Transit Connect Van, Transit Connect Wagon

Applies To: Passenger Automobiles under 6,000 lbs. GVWR

Eligible Vehicles: Explorer, Edge, Escape, and EcoSport

*Plus any remaining basis using MACRS method. **If you have questions, consult your tax professional for exact rules regarding Section 179 and vehicles.

What Is IRS Section 179? How Can It Help My Bottom Line?

Section 179 is the current IRS tax code that allows you to buy qualifying Ford vehicles and deduct up to the full purchase price (including any amount financed) from your gross taxable income if purchased before December 31, 2022. That means that if you buy a piece of qualifying equipment and products, you may be able to write off up to the FULL PURCHASE PRICE from your gross taxable income this year!

Which Vehicles Qualify For Tax Savings?

Trucks with a GVWR greater than 6,000 lbs. and a bed length of at least six feet (i.e., Ford F‑150/F‑250/F‑350) qualify for the maximum first‑year depreciation deduction of up to the FULL PURCHASE PRICE. SUVs, including trucks, with a bed length of less than six feet and a GVWR greater than 6,000 lbs. (i.e., Ford F-150 SuperCrew 5.5 ft. bed, Explorer, Expedition) qualify for a maximum first‑year depreciation deduction of up to the first $25,000 of the full purchase price plus 60% depreciation of any remaining balance.

Is There A Catch?

The qualifying vehicle must be purchased and placed into service between January 1, 2022, and December 31, 2022. It must be used at least 50% for business, based on mileage, in the first year it is placed in service. So if you choose to use it for both personal and business use, the cost eligible for the deduction would be the percentage used for business. Please note that all businesses that purchase and/or finance less than $2,700,000 in business equipment during tax year 2022 should qualify for the Section 179 deduction.

Now is a great time to buy!

In addition to the significant tax savings opportunities above, you can also take advantage of current promotions*, plus any applicable Customer Cash offers. It really is an incredible time to buy.

Shop New Ford Inventory

NOTE: The information supplied here is provided by your local Ford Dealer as a public service to its customers. It should not be construed as tax advice or as a promise of potential tax savings or reduced tax liability. Individual tax situations may vary. Federal rules and tax guidelines are subject to change. For more information about the Section 179 expense write-off or other business vehicle expense write-offs, you should consult your tax advisor for complete rules applicable to your transaction and visit the Internal Revenue Website at www.irs.gov. This analysis applies only to vehicles placed in service in the United States after January 1, 2022 and by December 31, 2022 with no written binding contract for acquisition in effect before January 1, 2022. The aggregate deduction of $1,080,000 under Internal Revenue Code Section 179 is most beneficial to small businesses that place in service less than $2,700,000 of "Section 179 property" during the year (vehicles and other business property). IRC Section 280F(d)(7(B) requires that the limitation under IRC Section 280F(a)(1) be adjusted annually, based on the CPI automobile component for October of the preceding year. The IRS officially announced the Section 280F depreciation limits in Revenue Procedure 2018-23. The passenger automobile imitation is $11,160, the trucks/vans under 6,000 lbs. limitation is $11,560. SUV's over 6,000 pounds GVWR are limited to a deduction of $25,000 under Section 179(b)(5) with the remaining basis in the vehicle depreciated under normal MACRS methods. The expensing restrictions under Section 280F do not apply to vehicles that are considered to be "qualified non-personal use vehicles" (QNUVs). A QNUV is generally a vehicle that, by virtue of its nature or design, is not likely to be used more than a de minimis amount for personal purposes. For more information, see Income Tax Reg., Sec. 1.280F-6(c)(3)(iii), Income Tax Reg. Sec. 1.274-5T(k), and Revenue Ruling 86-97, and contact your tax advisor for details. Consult your tax advisor as to the proper tax treatment of all business-vehicle purchases. All prices exclude taxes, title and registration and document fees. Not all buyers will qualify for all offers. Above total savings are examples of specific vehicles; total savings varies by vehicle. (Individual Vehicle Incentives and Offers go here) Available at participating dealers only. For all offers, take new retail delivery from dealer stock by 12/31/2022. See dealer qualifications and complete details. All incentives were correct at the time of printing and are subject to change at any time. Models shown may not represent the actual vehicle description listed, and therefore may include additional features and/or accessories.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Prices include all costs to be paid by a consumer, except for licensing costs, registration fees, and taxes. ‡Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.

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