Commercial truck owners are reminded that the U.S. Internal Revenue Code, Section 179 (commonly referred to as IRC-179) allows businesses to expense up to $25,000 in tax year 2014 for certain capital expenditures, including commercial work trucks.
According to truckmaker Mitsubishi Fuso, normally, capital expenditures must be handled as depreciable assets. However, provisions of IRC-179 allow a taxpayer to elect to treat the cost of qualifying Section 179 property as an expense in the tax year in which the equipment is placed in service, rather than as a depreciable asset charged to a capital account. For qualifying equipment placed in service in a business’s tax year beginning in 2014, the limit is $25,000.
Specific provisions and restrictions do apply, and every business’s tax situation is unique, so business owners should consult their own tax accountants or attorneys to determine how much tax saving, if any, IRC-179 could provide.
Information on IRC-179 can be found here: www.irs.gov/publications/p946/ch02.html.