If your business needs a new pickup truck, now might be the best time to buy a new Honda Ridgeline. You could deduct the purchase price on your business’s taxes under Section 179 of the federal tax code. 

Sometimes, spending money now does save you money later! 

Of course, Section 179 is complicated. We always suggest that when making business purchases it’s a good idea to consult a tax professional. But to simplify things, according to Investopedia Section 179 is a way to provide “an immediate expense deduction that business owners can take for purchases of depreciable business equipment instead of capitalizing and depreciating the asset over a period of time.”

It applies to purchases of vehicles weighing 6,000 to 14,000 lbs. gross vehicle weight (GVWR) but deductibility also depends on model, trim level and drivetrain. That includes pickups like the Honda Ridgeline.

Here’s the Top Line on Section 179

 

• The maximum deduction available in a single tax year is $2.5 million; there’s a phase-out threshold at $4 million.
• For passenger vehicles generally used on public roads with GVWR of between 6,000 and 14,000 lbs., there is a “heavy SUV cap” of $32,000. 
• There may be a difference in how the tax code treats pickups, SUVs and vans. Best to consult your tax specialist to know what these differences/exceptions are.
• The vehicle must be used 50% or more of the time for business – not personal – purposes.
• Maintaining good records, including a photo of the GVWR label, mileage logs or some other reliable tracking method and notes on how vehicles are actually used because it may affect deductibility. 
  It’s good to know you can reduce your tax burden, so consider Section 179. This might be the right time for purchasing one or more new Honda Ridgelines. Just be sure to consult your tax advisor and then talk to one of our client advisors who can help you find just the vehicle(s) you need. 
  
  

It’s good to know you can reduce your tax burden, so consider Section 179. This might be the right time for purchasing one or more new Honda Ridgelines. Just be sure to consult your tax advisor and then talk to one of our client advisors who can help you find just the vehicle(s) you need.