NEW 2020 Tax Guidelines
Greater Benefits for Small Businesses

Potential tax breaks when you buy a new Ford Commercial Vehicle.

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. But now, many small businesses can write off up to the entire purchase cost of one or more qualifying new Ford trucks or vans. And there is no dollar limit on your purchases.

Is there a catch?

Qualifying vehicles must be purchased and placed into service between January 1, 2020 and December 31, 2020. It must be used at least 50% for business, based on mileage, in the first year it is plaecd in service. So if you choose to use it for both personal and business purposes, the cost eligible for the deduction would be the percentage used for business.

What's the urgency?

For the 2020 tax year, the qualifying vehicle must be purchased and placed into service by December 31, 2020.

Transit

Deduct up to the entire purchase cost of one or more vehicles on your 2020 tax return.

Transit Connect

Deduct up to $18,100 in the first year. Then the remainder over the next several years under normal depreciation method.

Super Duty

Deduct up to the entire purchase cost of one or more vehicles on your 2020 IRS tax return.

Medium Duty

Deduct up to the entire purchase cost of one or more vehicles on your 2020 IRS tax return.

IRS Tax Code Section 168(k): you may be able to deduct the cost of your commercial vehicle purchases during the first year of ownership by taking advantage of IRS Code Section 168(k). Remember this potential savings and consult your Tax Professionals to see how you can benefit.

NOTE: The information supplied here is provided by your local Ford Dealer as a public service to its customers. It should not be construed as tax advice or as a promise of potential tax savings or reduced tax liability. Individual tax situations may vary. Federal rules and tax guidelines are subject to change. For more information about the Section 179 expense write-off or other business vehicle expense write-offs, you should consult your tax advisor for complete rules applicable to your transaction and visit the Internal Revenue Website at www.irs.gov. This analysis applies only to vehicles placed in service in the United States after January 1, 2020 and by December 31, 2020 with no written binding contract for acquisition in effect before January 1, 2020. The aggregate deduction of $1,000,000 under Internal Revenue Code Section 179 is most beneficial to small businesses that place in service less than $2,500,000 of "Section 179 property" during the year (vehicles and other business property). IRC Section 280F(d)(7(B) requires that the limitation under IRC Section 280F(a)(1) be adjusted annually, based on the CPI automobile component for October of the preceding year. The IRS officially announced the Section 280F depreciation limits in Revenue Procedure 2018-23. The passenger automobile imitation is $11,160, the trucks/vans under 6,000 lbs. limitation is $11,560. SUV's over 6,000 pounds GVWR are limited to a deduction of $25,000 under Section 179(b)(5) with the remaining basis in the vehicle depreciated under normal MACRS methods. The expensing restrictions under Section 280F do not apply to vehicles that are considered to be "qualified non-personal use vehicles" (QNUVs). A QNUV is generally a vehicle that, by virtue of its nature or design, is not likely to be used more than a de minimis amount for personal purposes. For more information, see Income Tax Reg., Sec. 1.280F-6(c)(3)(iii), Income Tax Reg. Sec. 1.274-5T(k), and Revenue Ruling 86-97, and contact your tax advisor for details. Consult your tax advisor as to the proper tax treatment of all business-vehicle purchases. All prices exclude taxes, title and registration and document fees. Not all buyers will qualify for all offers. Above total savings are examples of specific vehicles; total savings varies by vehicle. (Individual Vehicle Incentives and Offers go here) Available at participating dealers only. For all offers, take new retail delivery from dealer stock by 12/31/2020. See dealer qualifications and complete details. All incentives were correct at the time of printing and are subject to change at any time. Models shown may not represent actual vehicle description listed, and therefore may include additional features and/or accessories.

Although every reasonable effort has been made to ensure the accuracy of the information contained on this site, absolute accuracy cannot be guaranteed. This site, and all information and materials appearing on it, are presented to the user "as is" without warranty of any kind, either express or implied. All vehicles are subject to prior sale. Prices include all costs to be paid by a consumer, except for licensing costs, registration fees, and taxes. Vehicles shown at different locations are not currently in our inventory (Not in Stock) but can be made available to you at our location within a reasonable date from the time of your request, not to exceed one week.