Tax Deduction Ahead: Section 179 for Bus Purchases in 2021

Your business may be able to take advantage of Section 179 for passenger bus purchases.

Simply put, Section 179 of the Internal Revenue Code allows a business to deduct all or part of qualifying capital purchase acquired during the tax year. This incentive, created by the U.S. Federal government, encourages businesses to buy equip

ment and spur capital investment, and in turn, economic growth. We can all use a little of that, right?

What is required to take advantage of Section 179?

 

Section 179 allows businesses to deduct the cost of qualifying capital assets. Certain types of business vehicles are eligible for this deduction. Some things to note:
– The Section 179 deduction cannot exceed net taxable income for the year
– Vehicles must be used at least half the time for business-related purposes
– Vehicles must be acquired, delivery taken and be “in service” before December 31
– First year bonus depreciation on eligible new and uses buses may have a deduction limit (consult your tax advisor)
– Vans or buses that seat nine or more passengers may qualify for full deduction

Section 179 can make a big difference

if deciding on a new bus purchase yet this year. Businesses have used Section 179 to fulfill immediate vehicle needs, instead of waiting. For most small businesses, the entire cost of qualifying equipment can be written-off for the 2021 tax year.

How Can You Take Advantage of Section 179?

The equipment has to be “new to you”, which means it can be new or pre-owned. You can pay cash or have it financed. You must take delivery of your vehicle on or before December 31st. This means if you want to take advantage of Section 179 start looking now! We have many buses available for delivery this year… Browse our inventory and let us know how we can help you find the bus that meets your needs!

Source: https://www.carprousa.com/blog/self-employed-and-business-owners-2021-tax-code-179-and-bonus-depreciation-information

Disclaimer: This material is for informational purposes only. Davey Coach Sales and its affiliates does not intend to provide, and should not be relied on for, tax, legal or accounting advice. Consult your own tax, legal and accounting advisers before engaging in any transaction.