Here at Honolulu Ford, those who are business owners with commercial trucks and vans from Ford should always be aware of the different tax options they have, and 2025 has brought some new changes with it, which our team is here to highlight and discuss further with you.
Bonus Depreciation Ford Fleet Vehicles in Honolulu, HI
Commercial Vehicle Tax Information for Drivers in Honolulu
The 100 Percent Bonus Depreciation is Back
Beginning in January 2025, the 100 percent bonus depreciation for qualifying assets that have gone into service after January 19, 2025, has been reinstated. This means businesses can now fully deduct the cost of eligible capital purchases-like machinery, software, vehicles, and certain improvements-in the year they're placed in service. Companies can opt to take 40 percent or 60 percent depreciation in the first year instead of the full 100 percent, allowing for smoother income management over multiple years.
Expansion to the Section 179 Tax Benefit
Now, we'll see the Section 179 expensing limit increased to $2.5 million, with a phase-out starting at $4 million. This allows for more deductions to be made, and some assets like vehicles are eligible for overlap with the bonus depreciation. Section 179, unlike the bonus depreciation, is based on the in-service date, so long as the purchase was made within the tax year. Many still find this to be a useful benefit as you can deduct the full price of the vehicle if it's used more than 50 percent of the time for work. Some restrictions do apply, as it's not eligible for rideshare services, and you cannot also combine it with the standard mileage deduction.
We're Here to Help You Navigate Commercial Vehicle Tax Benefits
You should consult your business financial consultant or accounting team for how best to keep your paperwork in order to file for either the 100 percent bonus depreciation of Section 179, but when you're looking to purchase a new or pre-owned work truck or van such as the F-150, F-250, F-350 and up, along with the Ford Transit and our various work vans, we can help you determine which vehicle is eligible for these benefits, plus highlight which tax benefit might be the best to use in each scenario. We want to ensure you can find the commercial vehicle that best suits your work needs, whether it's trades from plumbing and HVAC to electrical work, to contracting, construction or landscaping, to farming and ranching. We're here to highlight which vehicles work best, and give you the chance to experience them with a test drive and find ways to effectively finance your growing business and fleet, plus learn of all the various tax benefits for businesses here in Honolulu.
Learn More And Visit Us Today
if you're ready to get started, contact us here at Honolulu Ford and we can begin this process with you soon.