Section 179 tax deductions

Understanding Section 179 Tax Deductions for 2025

Helping Businesses Save More at Lamarque Crescent City Ford

Smart business decisions often begin with understanding how to leverage tax incentives. For 2025, Section 179 of the Internal Revenue Code provides a powerful tool for small and medium-sized businesses to save money while investing in growth. By using this deduction, qualifying businesses can immediately write off the full purchase price of equipment, vehicles, and software, rather than spreading depreciation over several years. At Lamarque Crescent City Ford, we are committed to helping local businesses make the most of these savings opportunities when upgrading their fleets.

What Is Section 179?

Section 179 allows businesses to deduct the entire purchase price of qualifying equipment or vehicles in the year they are placed into service. Instead of depreciating assets slowly, you can take the full deduction upfront, giving you immediate tax relief. For businesses seeking to preserve cash flow, expand operations, or modernize technology, this deduction is a critical financial advantage.

2025 Section 179 Deduction Limits

The 2025 limits are among the most generous yet, providing room for significant investment:

  • Maximum Deduction: $1,250,000 for qualifying purchases
  • Phase-Out Threshold: Begins above $3,130,000 in purchases
  • Complete Phase-Out: $4,380,000
  • Bonus Depreciation: 40 percent after Section 179 deduction is applied
  • Eligibility: Both new and used equipment and vehicles qualify

These limits make Section 179 especially useful for small and medium-sized companies looking to manage costs while staying competitive.

How Phase-Out Rules Work

It's important to understand the spending cap. Once your business exceeds $3,130,000 in qualifying purchases for the year, the Section 179 deduction begins to phase out dollar for dollar. By the time total purchases reach $4,380,000, the deduction is completely phased out. However, bonus depreciation-set at 40 percent in 2025-can still be applied to additional purchases, helping soften the impact for businesses with larger investments.

Why Section 179 Matters in 2025

For many businesses, Section 179 is about more than tax savings; it's about financial flexibility and growth. The immediate deduction provides three major advantages:

  • Immediate Tax Impact: Rather than waiting years for depreciation benefits, claim the full deduction in 2025
  • Enhanced Cash Flow: Free up working capital for payroll, marketing, or other business needs
  • Strategic Growth: Upgrade vehicles and equipment sooner, keeping your business efficient and competitive

At Lamarque Crescent City Ford, we know how crucial these advantages are for local business owners, contractors, and fleet managers who depend on reliable vehicles.

Vehicles and Section 179

One of the most practical uses of Section 179 is applying it toward qualifying commercial vehicles. Many Ford models-including select trucks and vans-may qualify for full or partial deductions, depending on weight and use. Vehicles used more than 50 percent for business purposes are generally eligible. For growing businesses, this means you can expand your fleet, deduct the cost immediately, and reinvest your savings right back into operations.

Examples of Eligible Purchases

Section 179 applies to more than just vehicles. It also covers:

  • Work trucks and cargo vans placed into service in 2025
  • Computer software used for business management
  • Office equipment and upgrades necessary for operations
  • Machinery or improvements directly tied to production or services

By combining vehicle upgrades from Lamarque Crescent City Ford with other eligible purchases, businesses can maximize deductions and long-term growth potential.

How to Take Advantage

To qualify for the Section 179 deduction in 2025, equipment or vehicles must be purchased and placed into service before the end of the tax year. That means businesses should plan purchases early and ensure delivery deadlines are met. Documentation is essential, and working closely with your tax advisor will help confirm eligibility and optimize deductions. At Lamarque Crescent City Ford, our team can provide the sales documentation and support you need to stay compliant with IRS rules.

Partner with Lamarque Crescent City Ford

Section 179 represents an opportunity to keep more of your money while upgrading your business with the vehicles and tools it needs. The 2025 deduction limits make this year a critical time to act, with $1,250,000 in potential deductions and additional savings through bonus depreciation. Businesses across New Orleans and beyond have trusted Lamarque Crescent City Ford to provide commercial vehicles that meet their needs, backed by financing solutions that align with Section 179 benefits.

Contact our commercial sales team today to explore our inventory of trucks, vans, and fleet-ready vehicles, and learn how Section 179 can help your business save. Together with expert tax guidance, you can maximize your deductions, strengthen your operations, and move forward with confidence.

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  1. Lamarque Crescent City Ford

    6121 Jefferson Hwy
    Harahan, LA 70123

    • Sales: (504) 818-1818
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