This content is sponsored by Fair Oaks Motors.
The end of the year is usually a great time to buy a new vehicle. Especially since 2020 and 2021 models are fighting for space on the dealer’s lot. Rebates and a little extra cash back help move out inventory before the year ends.
If you are a business owner, this year there is even more reason to upgrade the fleet. There are some big tax benefits like the ability to deduct up to 100% of the purchase price in the first year for each vehicle. If you need a pick-up like a light duty Ram 1500 or even the heavy duty Ram 2500 or 3500, you can save big on the first year of ownership. You can also see tax benefits on the Ram 3500-5500 chassis cab models as well. Use vans instead of trucks? Ram Commercial has you covered with the smaller Ram ProMaster City cargo van or the larger Ram ProMaster van. If you need a passenger van, the Ram ProMaster City passenger wagon is also eligible for some hefty savings come tax time.
So what does it mean? Depending on the purchase price, you could realize over $18,000 purchase price deduction per vehicle you buy. This is good for the tax year you buy the vehicle in, allowing you treat the cost of your work ride as an expense under Section 179 First-year Expenses. This isn’t just for one work vehicle but good toward the entire fleet for 2020. Make sure you consult your business tax advisor, but quick research uncovered that a qualifying business can expense nearly $1,000,000 of section 179 property during 2020.
Not a big business looking to replace the entire fleet? There is also help for a small businesses looking to add a new work truck or van. Section 168K might just be a big help for you. This allows a qualifying tax payer to elect to treat the cost of a qualified purchase as an expense allowed as a deduction. So you could see some relief on the year’s taxes in which you buy and place your work ride into service.
While it may have been a trying year financially, the end of the year is a good time to upgrade your work truck or van or the entire fleet to take advantage of end-of-the-year pricing. Business owners can see special savings when it comes tax time. Talk to your tax advisor to know if it’s the time to upgrade.