Don’t let the thought of tax law get you down. Section 179 is actually a pretty simple deduction you can take advantage of.
If you’re a business owner, rancher, or farmer in North Dakota, you should qualify for the Section 179 deduction. Most tangible goods — including new RAM trucks and Jeeps — are eligible under Section 179.
In past tax law, businesses were only able to write off purchases over time, meaning a $50,000 deduction could be written off $10,000 a year over five years. Section 179 allows you to write off the entire vehicle purchase in the current tax year.
Rather than waiting to buy new vehicles for your business, you can purchase or lease a new vehicle now and write it off in your 2020 deductions. This works for businesses in need of one or two vehicles or those managing a new fleet, with a $1,000,000 cap on spending.
The major stipulation is that the new vehicles purchased under Section 179 must be used at least 50% for business purposes in the first year it is in service. Personal daily drivers aren’t eligible. Get more information on which vehicles are eligible here.
"Every year at this time business owners across North Dakota come to Eide Chrysler to purchase a new vehicle for their business,” said Eide Chrysler General Sales Manager Don Pask. “This gives them the opportunity to get a new vehicle and receive some tax savings. This truly is a great program that supports big and small business.”
No matter what industry you’re in, we’ve got what your business needs. In addition to the significant tax savings afforded by Section 179, you can also take advantage of current promotions.