There still is time to receive some amazing tax incentives for 2020. NationaLease San Diego has several models ready for delivery so you can take advantage of the tax benefits.
When you purchase a truck for business purposes and begin using it, you can apply the benefit of the “Section 179 deduction”. Section 179 of the IRS code was enacted to help small businesses take a depreciation for capital expenditures in one year, rather than depreciating over the useful life of item purchased.
For example, if you purchase a commercial truck to enhance your fleet or to replace trucks that are nearing their end of service life, you can deduct the full cost of the truck in one year. The truck must be purchased and put into service during the year in which you claim the deduction.
There are some annual limits on the amounts that can be deducted per Section 179. For 2020, the cap for total write-off is $1,040,000 and the limit for the total amount purchased is $2.5 million. The deduction decreases after $2.5 million is spent and is not available for total purchases over $3.5 million, thus making this tax incentive truly focused on small and medium businesses.
All businesses that purchase, finance, and lease new and used business equipment during the 2020 tax year potentially quality for Section 179 Deductions. Commercial truck leasing and purchase are among the eligible goods. For most small businesses, the entire cost of a truck purchase could be written-off on the 2020 tax return.
If you have any questions about Section 179 Deductions, our knowledgeable staff at NationaLease of San Diego is here to help. We have some excellent resources on our website to help you get started. Visit https://www.section179.org/section_179_deduction to get all the details.
Of course, we recommend you also consult with your accountant as he/she will know best about your particular business expenses and other planned deductions for your business in Tax Year 2020. Thank you for considering NationaLease of San Diego. Our family-owned business has been serving the greater San Diego area for 37 years. We look forward to helping you with all your commercial truck needs.