Have you heard about the Section 179 tax deduction?

If not, let me tell you, it’s a ray of sunshine on a cloudy day – like being lucky enough to see an actual shooting star and capture it on your smartphone.

In this instance, that cloudy day speaks metaphorically of the trucking industry, which is currently in a recession. Adding to the storm the trucking industry is weathering, is rising insurance rates, which have already obliterated some fleet operations like an F5 tornado hitting a hen house.

The Section 179 tax deduction is like a much-needed escape hatch that could catapult you back to viability with your next commercial truck and/or equipment purchase.

You see, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying commercial trucks and equipment designed to save small to medium sized truckers, owner-operators, and businesses money!

If does this by allowing you to deduct 100% of the cost of the new or pre-owned truck from your taxes!

“But, what’s the catch?” Let’s dig in…

Section 179 Deduction Limit

For the full year of 2019, you may deduct 100% of the cost of a commercial truck or equipment, whether new or used, up to $1 million. As long as the equipment was purchased or financed and put into use from January 1 to December 31, 2019, you may take the full deduction!

Watch CFF’s President, Matt Manero, deliver his Section 179 video message on LinkedIn.Spending Cap on Truck Purchase

Section 179 has a maximum truck purchase cap of $2.5 million. After that amount is reached, your truck spend amount is reduced on a dollar for dollar basis. This spending cap ensures that small to mid-sized businesses are targeted with this tax incentive, instead of larger businesses that spend over $3.5 million.

Bonus Depreciation

On top of the above deduction, you may apply a 100% bonus depreciation after the Section 179 Spending Cap is reached. This bonus depreciation provision applies to both used and new trucks and equipment. Even better, this bonus depreciation is retroactive back to September 27, 2017 and works up until 2022!

Indeed, the Section 179 tax deduction puts more money in the pockets of growing commercial truckers. The next step is to take advantage of the opportunity.

Calculate Your Savings

Let’s use a 2018 Peterbilt 379 semi truck as an example. If you purchased your 2018 Peterbilt semi truck from a dealer in 2019, you could write off the entire Peterbilt truck purchase in 2019. That means you would have cash savings over $50,000!  If your trucking company operates as an S-Corp or LLC trucking company, this could potentially save you tens of thousands of dollars on your 2019 tax bill.

Start calculating your savings by using the Section 179 Calculator and find out how much money you’ll save on your next purchase of a new or used commercial truck.

Once you’ve calculated your savings and spoken with your tax advisor, you should get pre-qualified for a loan on your next commercial truck with America’s most trusted equipment finance company, CFF! We simply have the best finance programs with the most flexibility to suit your specific needs.

To get pre-qualified for your purchase, start that process now and fill out our Fast App Online Credit Application.CFF is committed to offering our clients and dealers unique tools to help them make informed buying decisions. Our Budget Builder tool does just that…it helps you determine the profitability of your desired equipment purchase.

It’s totally free and will help you estimate what you should be making as profit in your business. Get started with the Budget Builder tool.About Commercial Fleet Financing, Inc.:

At Commercial Fleet Financing (CFF), our pros have given smart advice to fleet owners and owner-operators in the transportation, moving, towing or construction industries for more than two decades. With CFF, finding the right financing solutions is a phone call away and most borrowers secure commercial vehicle financing with ease. To talk directly with one of our finance pros and get started with a credit approval in as little as two hours, CFF’s phone number is (469) 281-2962.