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U.S. Businesses Can Expense Up to $500K in Truck Purchases


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Heavy Duty Trucking (HDT)  /  September 22, 2017

The U.S. Internal Revenue Code, Section 179 (commonly referred to as IRC-179) allows businesses to expense up to $500,000 in the tax year 2017 for certain capital expenditures, including commercial work trucks.

Normally, capital expenditures must be handled as depreciable assets. However, provisions of IRC-179 allow a taxpayer to elect to treat the cost of qualifying Section 179 property as an expense in the tax year in which the equipment is placed in service, rather than as a depreciable asset charged to a capital account. For qualifying equipment placed in service in a business’s tax year beginning in 2017, the limit is $500,000.

Specific provisions and restrictions do apply, and every business’s tax situation is unique, so business owners should consult their own tax accountants or attorneys to determine how much tax saving, if any, IRC-179 could provide.

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One would assume that for the sake of simplicity,if you bought three new road tractors or one piece of heavy equipment you could write them or it off the first year! But you would presumably lose the standard three or five year write off,since I doubt they would give you both! Interesting! I've always thought the concept of a flat tax on all income seemed fair,but corporate America would never go for that! I heard that Gulf oil in the early sixties paid 500.00 dollars in taxes!

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