MFTA reminds fleets about work truck purchase tax expenses

Businesses may be able to expense up to $500,000 in tax year 2013 for certain capital expenditures, including commercial work truck purchases, notes Mitsubishi Fuso Truck of America. For qualifying equipment placed in service in a business's tax year beginning in 2013, the limit is $500,000. For tax years beginning in 2014 the deduction for IRC-179 property is currently scheduled to revert to $25,000.

Businesses may be able to expense up to $500,000 in tax year 2013 for certain capital expenditures, including commercial work truck purchases, notes Mitsubishi Fuso Truck of America. While capital expenditures are normally handled as depreciable assets, the company advises, under Section 179 of the U.S. Internal Revenue Code (commonly referred to as IRC-179), a taxpayer may 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 2013, the limit is $500,000. For tax years beginning in 2014 the deduction for IRC-179 property is currently scheduled to revert to $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.