Mitsubishi Fuso Truck of America, Inc. (MFTA) has advised that Congress just passed and President Obama signed into law House Bill H.R. 5771, which boosts the business expense deduction for capital equipment like new commercial medium duty trucks to $500,000 for a business’s tax year beginning in 2014. The U.S. Internal Revenue Code, Section 179 (commonly referred to as IRC-179) allows businesses to expense certain capital expenditures, including commercial work trucks like the FUSO Canter FE/FG Series.
Until December, the 2014 deduction limit had been set at $25,000. But in a late move, Congress voted to raise that limit to $500,000 for 2014. So a company that needs commercial trucks can purchase them and deduct the entire purchase price, up to the $500,000 limit, instead of carrying them on the books as a depreciable asset for a number of years. But the business must purchase and take delivery of the trucks or other assets by Dec. 31, 2014.
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.
The limit is currently set to revert to $25,000 in tax years beyond 2014.
