This section of the U.S. internal revenue code offers an immediate deduction for assets. If you have capital to invest in an asset that could not only be a deduction but also add value or revenue to your business, you’d want to explore options, right? Buying a truck is one option to do both.
What Is Tax Code 179?
A 179 tax deduction enables business owners to claim an immediate expense reduction for equipment. This code is an alternative to capitalizing and depreciating an asset over time. Such a purchase can save you money on your business tax return.
This special deduction began in 2018 and allows you to write off up to $1 million worth of depreciable assets in the year purchased.
Requirements and Limitations for Vehicle Deductions
There are requirements and limitations for any vehicle depreciation deduction. To qualify, you must use the vehicle at least 50% of the time for business. Different classes of vehicles have top-end deductions, including small cars and light SUVs. However, for trucks that exceed 6,000 lbs. with no rear seating, there is no cap.
How Real Estate Agents and Self-Storage Owners Can Benefit from Truck Ownership
Could a truck improve your business? By buying a moving truck, real estate agents and self-storage owners can reap many benefits, including:
- Advertising: Your brand and graphics will make a splash when your truck hits the road. (You could reach over 600 impressions per mile!)
- Community goodwill: You can use your truck for community events or fundraisers to give back and build your reputation.
- New revenue stream: Rent your truck to your self-storage customers. It’s convenient for them and provides a new source of revenue.
- Growing your business: Having a truck on hand for customers is a differentiator. That, combined with the exposure, could boost your market share.
Claim Your 179 Tax Deduction for 2020
The clock is ticking on 2020 deductions. To take advantage of Tax Code 179, business owners must make the purchase by the end of the year. With only weeks left, this is your opportunity to buy a truck that can benefit you, tax-wise, and elevate your business.
At On The Move, we have programs for real estate agents and self-storage owners. In addition to selling or leasing you the truck, we install the graphics, help with access to our insurance license program and provide service. It’s a turnkey experience for you.
Start today by finding your truck.