Section 179 IRS Tax Deduction
Section 179 IRS Tax Deduction
Medium Duty Trucks Purchased by Year-End May Be Eligible for Section 179 Tax Savings
As 2025 draws to a close, it is important to consider what tax benefits your business can take advantage of. One benefit a lot of businesses do not realize they are eligible for is Section 179 of the IRS Tax Code. Section 179 allows for business owners to invest in their company through a tax deduction on qualified equipment purchases – like a new Isuzu work truck. The savings when using the Section 179 deduction can be substantial, especially when you consider that medium duty trucks qualify for a deduction of the full vehicle price during its purchase year. The main benefit of the Section 179 Deduction is that it is not drawn out over multiple years with depreciation. The full deduction is eligible in the first year. As with most financial matters, it is best to consult with your tax advisor if you plan to take advantage of the Section 179 deduction. When it comes to your next medium duty truck purchase, the experts at Coffman Truck Sales can help you find the right truck to drive your business into the future.
Check out the inventory at Coffman Truck Sales or contact one of our truck specialists today by calling 630-892-7093.
Is Section 179 Deduction Complicated?
Unlike many parts of the IRS Tax Code, Section 179 is fairly straightforward. It was developed in order to encourage businesses to grow through investments. To promote investment, deductions are allowed for the full purchase price of a qualifying vehicle in the year it is purchased. Many business expenses are only eligible for partial deductions each year through depreciation. For the equipment to be eligible, it must be tangible, purchased during the tax year for which it is being deducted, used more than 50% for business purposes, and it must not be acquired from a related party. In order to take advantage of this deduction, you must include a brief description of the property, the total cost, and the amount of Section 179 the business is claiming for that particular asset on Part I of IRS Form 4562, Line 6.
How does Section 179 Apply to Commercial Truck Purchases?
The best place to learn about 2025 Section 179 tax rules is at www.section179.org or by consulting your tax advisor.
Changes this year include:
- $1,250,000 deduction limit
- The Section 179 deduction phases out dollar‑for‑dollar when total qualifying purchases exceed $4,000,000 and is fully phased out at $6,500,000.
- 100% bonus depreciation
Commercial truck purchases, whether medium duty, severe duty or long haul, may qualify for the full deduction on this year's tax filing. For many business owners, this one-time deduction is preferred not only because it offsets the expense of a commercial truck, but also because the entire purchase price is deducted from the year’s gross income.
It is important that your new work truck be placed into service before midnight of December 31, 2025, if you want to apply the Section 179 tax deduction to the 2025 tax year. With that in mind, you should start your search now at Coffman Truck Sales in Aurora, IL.
Call now to speak with a truck specialist about your next Medium Duty Work Truck purchase.
In order to use Section 179 properly, and confirm qualification details, always consult with a tax professional before purchasing a vehicle.
