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Mitsubishi Fuso Truck of America is reminding potential truck buyers that they may be able to find favorable tax treatment of commercial truck purchases this year.
According to the U.S. Internal Revenue Code (IRC), Title 26, Section 179, a taxpayer may elect to treat the cost of any qualifying property as an expense, rather than a depreciable capital asset. Using this tax code provision, business owners may be able to deduct the full purchase cost of a qualifying work truck or trucks, up to the $500,000 limit, for vehicles placed in service in 2011.
As the tax legislation currently stands, the IRC179 maximum allowable deduction for tax year 2012 and beyond is set to revert to $25,000, so if you’re considering the purchase of a new FUSO truck or trucks, you should certainly consider the tax implications of buying this year versus postponing the purchase beyond 2011.
IRC Section 179 contains a number of limitations and provisions that may affect the extent to which any business can deduct any specific purchase. Consequently, business owners should consult their own tax advisers and accountants regarding their individual situation and the applicability of IRC 179 to it.