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$500,000 Tax Deduction for Work Truck Purchases to Change
| Latest NewsThe Internal Revenue Code, Title 26, Section 179, maximum deduction for the
cost of certain capital machinery and equipment, including commercial work
trucks, is $500,000 for tax year 2011, but is set to revert to $25,000 in 2012.
Mitsubishi Fuso Trucks of America, Inc., wants to remind potential truck buyers
that they may be able to find favorable tax treatment of commercial truck
purchases this year. According to the Internal Revenue Code (IRC), a taxpayer
may elect to treat the cost of any qualifying property as an expense, rather
than a depreciable capital asset.
Using this tax code provision, business
owners may be able to deduct the full purchase cost of a qualifying work truck
or trucks, up to the $500,000 limit, for vehicles placed in service in 2011.
As the tax legislation currently stands, the IRC179 maximum allowable deduction
for tax year 2012 and beyond is set to revert to $25,000, so if you’re
considering the purchase of a new truck or trucks, you should certainly
consider the tax implications of buying this year versus postponing the
purchase beyond 2011.
IRC Section 179 contains a number of limitations and provisions that may affect
the extent to which any business can deduct any specific purchase.
Consequently, business owners should consult their own tax advisers and
accountants regarding their individual situation and the applicability of IRC
179 to it.
