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Big Benefits for Small Businesses

Thanks to the 2017 IRS Tax Cuts and Jobs Act, many small businesses that invest in new equipment will get potential tax breaks through Section 168(k) Tax Program!

You may be able write off up to the entire purchase cost of qualifying new vehicles on your 2020 IRS returns.1 And the best place to get your next commercial vehicle is the Andy Mohr Truck Center!

Which Vehicles Qualify?

Qualifying vehicles must be purchased and placed into service after January 1st, 2020 and before December 31st, 2020 and used for business for at least 50% of their mileage. Section 168(k) applies to trucks, vans, and SUVs rated greater than 6,000 lbs. GVWR1

Where Can I Get More Information?

Your Ford Commercial Account Manager will have more details. Also remember to consult your tax professional to see how you can benefit.

Transit

Potentially deduct up to the entire purchase cost of one or more vehicles on your 2020 IRS tax return.1

(Applies to trucks, vans and SUVs rated greater than 6,000 lbs. GVWR)

transit new10302020
transit new10302020

Transit Connect

Potentially deduct up to $18,100 in the first year.1 Then the remainder of your purchase cost over the next several years under normal depreciation method.1

(Applies to trucks, vans and SUVs rated less than 6,000 lbs. GVWR)

Super Duty®

Potentially deduct up to the entire purchase cost of one or more vehicles on your 2020 IRS tax return.1

(Applies to trucks, vans and SUVs rated greater than 6,000 lbs. GVWR)

transit new10302020
transit new10302020

Medium Duty

Potentially deduct up to the entire purchase cost of one or more vehicles on your 2020 IRS tax return.1

(Applies to trucks, vans and SUVs rated less than 6,000 lbs. GVWR)

Get More Info

Contact your Ford Commercial Account Manager for more information and be sure to consult your tax professional to see how you can benefit.

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 168 (K) expense write-off or other business vehicle expense write-offs, you should consult your tax professional for complete rules applicate to your transaction and visit the Internal Revenue Website at www.irs.gov.

1. Under Bonus Depreciation in Section 168 (K) of the Internal Revenue Code, companies may be eligible to fully expense the cost of trucks, vans and SUVs rated over 6,000-lbs. GVWR, when purchased for business use. Trucks and vans that are considered passenger vehicles, rated under 6,000-lbs. GVWR, are limited to $18,100 of depreciation in the year of purchase with normal MACRS depreciation on the remaining basis in the vehicle in subsequent years. A vehicle is not considered a passenger vehicle and is thus not limited to the lower depreciation amounts, if it is considered a "qualified non-personal use vehicle." Qualified non-personal use vehicles are vehicles that, by virtue of their nature or design, are not likely to be used more than a de minimus amount for personal purposes. Examples of qualified non-personal use vehicles include 1) a vehicle that can seat nine-plus passengers behind the driver's seat, 2) a heavy non-SUV vehicle with a cargo area of at least six feet in interior length or 3) a vehicle with a fully-enclosed driver's compartment/cargo area, no seating behind the driver's seat and no body section protruding more than 30 inches ahead of the leading edge of the windshield. For more information, see IRC Section 280 (d)(7), 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.