2011 Offers Opportunity For $500,000 Tax Deduction For Work Truck Purchases
The Internal Revenue Code, Title 26, Section 179’s maximum deduction for the cost of certain capital machinery and equipment, including commercial work trucks, is $500,000 for tax year 2011, but is set to revert to $25,000 in 2012.
Logan Township, NJ– Mitsubishi Fuso Truck of America, Inc. would like to remind potential truck buyers that they may be able to find favorable tax treatment of commercial truck purchases this year. According to the U.S. Internal Revenue Code (IRC), Title 26, Section 179, a taxpayer may elect to treat the cost of any qualifying property as an expense, rather than a depreciable capital asset. Using this tax code provision, business owners may be able to deduct the full purchase cost of a qualifying work truck or trucks, up to the $500,000 limit, for vehicles placed in service in 2011.
As the tax legislation currently stands, the IRC179 maximum allowable deduction for tax year 2012 and beyond is set to revert to $25,000, so if you&rsquore considering the purchase of a new FUSO truck or trucks, you should certainly consider the tax implications of buying this year versus postponing the purchase beyond 2011.
IRC Section 179 contains a number of limitations and provisions that may affect the extent to which any business can deduct any specific purchase. Consequently, business owners should consult their own tax advisers and accountants regarding their individual situation and the applicability of IRC 179 to it.
About Mitsubishi Fuso
Headquartered in Logan Township, NJ, Mitsubishi Fuso Truck of America, Inc. (MFTA) is a subsidiary of Mitsubishi Fuso Truck and Bus Corporation, Kawasaki, Japan, an integral part of the Daimler Trucks Division of Daimler AG. With a 25-year heritage in North America, MFTA is focused on delivering trucks with the lowest cost of ownership in their class. Its Class 3-5 diesel-powered, medium-duty cabover trucks are available through more than 200 dealer locations throughout the United States, Canada, and Puerto Rico. More than 100,000 Mitsubishi Fuso standard, 4-wheel-drive and crew cab trucks have been sold in North America to fulfill the transportation needs of a wide variety of businesses and industries, including beverage, catering, refrigerated and dry cargo delivery fleets, vehicle recovery, towing, pest control, plumbing, light construction and landscaping. For more information, visit http://www.mitfuso.com, follow FusoTruck on Twitter, or see our Facebook page.
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For more information:
Joshua T. Tregear, MFTA
Manager, Marketing & Communications
Ted R. Arnold, AB&C
Senior Account Supervisor