SECTION 179 FIRST-YEAR EXPENDING*
A Ram truck is generally considered Section 179 property for U.S. Federal Income Tax purposes. This means a taxpayer may elect to treat the cost of any Section 179 property as an expense, allowed as a deduction for the taxable year in which the property is placed in service. A qualifying business may expense up to $500,000 of Section 179 property during 2017.


Section 179 can provide you with significant tax relief for this 2017 tax year, but equipment must be financed and in place by midnight December 31, 2017. Use this  2017 Section 179 Calculator  to see how much the Section 179 tax deduction can save your company.

ELIGIBLE VEHICLES 
For businesses that do not qualify for Section 179, there is another great tax break, but it expires in 2019.  Bonus Depreciation allows you to deduct 50% of the cost of assets in the year of purchase.  This deduction is allowed even if you do NOT have income and has no max amount.  You can use this for an unlimited number of purchases, but the deduction is only allowed for NEW assets.  For used vehicles, this deduction is not allowed, but Section 179 IS allowed.  The bonus depreciation deduction will be available at the 50% amount 2017.  In 2018 it will drop to 40% and in 2019 it will drop to 30%.
 
ELECTING THE SECTION
179 DEDUCTION
                                                                   

If you are self-employed, or a small or medium-sized business owner who has purchased, financed or leased equipment and placed it into service during 2017, you need to elect to take the Section 179 Deduction to ensure that your business gets the available tax savings (it is not automatic - you must elect to take it).
Electing to take the 179 Deduction is very easy:
Simply fill out Part 1 of IRS form 4562, available for free below, and attach it to your tax return (much like any other additional form, such as a "Schedule C" or similar).
Download IRS form 4562 for tax year 2017
Download instructions for IRS form 4562 for tax year 2017
If you do not feel comfortable completing the form yourself, your tax preparer can fill out the form 4562 for you. Your tax preparer may also be able to advise you of additional Section 179 Deduction and Bonus Depreciation savings that may be available to you.

*Consult your tax professional to determine your vehicle depreciation and tax benefits.
Things You Should Know
  • The vehicle must be used at least 50% for business to qualify. 
  • There are top end deductions for different classes of vehicles. For example, small cars under 6,000 lbs. are capped at $11,060 of depreciation in the first year. 
  • SUVs and crossovers with Gross Weight above 6,000-pounds are capped at $25,000, and pickups and vans with no rear passenger seating that are above 6,000-pounds do not have a cap.
  • Every major brand of pickup (1/2 ton and up) are over 6,000-pounds for purposes of this deduction.
  • ProMaster City passenger van may be eligible for up to $11,560 in total deductions in year 1.
  • The listed property expensing restrictions provided in Section 280F do not apply to a vehicle that is considered to be a qualified nonpersonal use vehicle. "A qualified nonpersonal use vehicle is by virtue of its nature or design not likely to be used more than a minimal amount for personal purposes".
  • For more information, see Income Tax Regulation Section 1.280F-6(c)(3)(iii), Income Tax Regulation Section 1.274-5(k)(7), Publication 946 - How to Depreciate Property and consult your tax advisor as to the proper tax treatment of all business vehicle purchases.
  • Tax Code Section 179 allows a special deduction to write off equipment in the year purchased.
  • It was extended permanently in 2015 legislation.
  • Self-employed persons or businesses who use this special deduction are allowed to write off up to $500,000 worth of depreciable assets in the year that they are purchased, in this case 2017.
  •  This can include machinery, heavy equipment, furniture and fixtures, and certain vehicles, mainly SUVs and pickup trucks.
  • There are limitations to the rule in addition to the $500,000 cap.
  • As always, check with your tax advisor to see what works best for your situation, but if you are doing some year-end planning, a new car might be the most fun way to save on your taxes.
  • Consider if you purchased more than $2,000,000 in 2017 asset, then this will have a deduction phased out. 
  • Also, you have to have positive income and not a net loss for the year.
  • If you meet these guidelines, then it can be a great idea to move those vehicle purchases you are planning for next year forward to 2016 to take advantage of last minute tax savings. 
  • You must purchase the vehicle by December 31, 2017 to get the write-off on your 2017 taxes.