What is the Section 179 Deduction? 

Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income.  See 'Vehicles & Section 179' for current limits on business vehicles. 

Here's How Section 179 works: 

Section 179 allows your business to write off the entire purchase price of qualifying equipment for the current tax year. This has made a big difference for many companies (and the economy in general.) Businesses have used Section 179. Purchase needed equipment right now, instead of waiting. For most small businesses, the entire cost of qualifying equipment can be written-off on the 2020 tax return (up to $1,040,000).

Section 179 at a Glance for 2020:

This deduction is good on new and used equipment, as well as off-the-shelf software. To take the deduction for tax year 2020, the equipment must be financed or purchased and put into service between January 1, 2020 and the end of the day on December 31, 2020.

This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true "small business tax incentive" (because larger businesses that spend more than $3,630,000 on equipment won't get the deduction.)

Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used equipment. The above is an overall, "birds-eye" view of the Section 179 Deduction for 2020. For more details on limits and qualifying equipment, as well as Section 179 Qualified Financing, please read this entire website carefully. We will also make sure to update this page if the limits change. Here is an updated example of Section 179 at work during the 2020 tax year.


 

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Limits of Section 179: Section 179 does come with limits - there are caps to the total amount written off ($1,040,000 for 2020), and limits to the total amount of the equipment purchased ($2,590,000 in 2020). The deduction begins to phase out on a dollar-for-dollar basis after $2,590,000 is spent by a given business (thus, the entire deduction goes away once $3,630,000 in purchases is reached), so this makes it a true small and medium-sized business deduction.

Who Qualifies for Section 179? All businesses that purchase, finance, and/or lease new or used business equipment during tax year 2020 should qualify for the Section 179 Deduction (assuming they spend less than $3,630,000). Most tangible goods used by American businesses, including "off-the-shelf" software and business-use vehicles (restrictions apply) qualify for the Section 179 Deduction. For basic guidelines on what property is covered under the Section 179 tax code, please refer to this list of qualifying equipment. Also, to qualify for the Section 179 Deduction, the equipment and/or software purchased or financed must be placed into service between January 1, 2020 and December 31, 2020. For 2020, $1,040,000 of assets can be expensed; that amount phases out dollar for dollar when $2,590,000 of qualified assets are placed in service.


Thanks to the 2017 IRS Tax Cuts and Job Act, many small businesses that invest in new equipment, including qualifying new vehicles, will be able to write off up to the entire purchase cost of these purchases on their 2020 IRS returns.*Normally, businesses spread these deductions over several years through depreciation. But now, many small businesses can write off up to the entire purchase cost of one or more qualifying new Ford trucks or vans.*For more information and a full outline of Section 179 visit https://www.section179.org/section_179_deduction/

* Please consult your tax professional to confirm eligibility.



Contact

Bayshore Ford Truck Sales

4003 North DuPont Highway
Directions New Castle, DE 19720

  • Sales: (302) 656-3160
  • Service: (866) 427-0565
  • Parts: (866) 414-8398

Hours

  • Monday 7:30am – 7:00pm
  • Tuesday 7:30am – 7:00pm
  • Wednesday 7:30am – 7:00pm
  • Thursday 7:30am – 7:00pm
  • Friday 7:30am – 6:00pm
  • Saturday 8:00am – 4:00pm
  • Sunday Closed
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Dealership Hours

  • Monday 7:30am – 7:00pm
  • Tuesday 7:30am – 7:00pm
  • Wednesday 7:30am – 7:00pm
  • Thursday 7:30am – 7:00pm
  • Friday 7:30am – 6:00pm
  • Saturday 8:00am – 4:00pm
  • Sunday Closed

Parts Dept. Hours

  • Monday 7:00am - 6:00pm
  • Tuesday 7:00am - 6:00pm
  • Wednesday 7:00am - 6:00pm
  • Thursday 7:00am - 6:00pm
  • Friday 7:00am - 6:00pm
  • Saturday 7:30am - 4:00pm
  • Sunday Closed

Service Dept. Hours

  • Monday 6:00am - 6:00pm
  • Tuesday 6:00am - 6:00pm
  • Wednesday 6:00am - 6:00pm
  • Thursday 6:00am - 6:00pm
  • Friday 6:00am - 6:00pm
  • Saturday Closed
  • Sunday Closed

Quick Lane® Hours

  • Monday 7:00am - 6:00pm
  • Tuesday 7:00am - 6:00pm
  • Wednesday 7:00am - 6:00pm
  • Thursday 7:00am - 6:00pm
  • Friday 7:00am - 6:00pm
  • Saturday 7:30am - 4:00pm
  • Sunday Closed
  1. Bayshore Ford Truck Sales

    4003 North DuPont Highway
    New Castle, DE 19720

    • Sales: (302) 656-3160
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