Hey guys, I’ve been wondering if the Ford F-150 qualifies for Section 179 in Colorado for the 2024 tax year. I know this is a big deal for small business owners who want to save on taxes. Anyone have some insights on this?
Yeah, it qualifies! If your F-150 is over 6,000 pounds GVWR, you’re good for Section 179. Most of the F-150 models meet that requirement.
Winter said:
Yeah, it qualifies! If your F-150 is over 6,000 pounds GVWR, you’re good for Section 179. Most of the F-150 models meet that requirement.
Oh, that’s great news! I wasn’t sure about the weight. Do you know if the 2024 models are the same?
@Jem
Yep, same deal. Most trims like XL, XLT, and Lariat are over 6,000 pounds. You’re covered.
Just make sure you use the truck for business more than 50% of the time, otherwise you won’t get the full deduction.
Case said:
Just make sure you use the truck for business more than 50% of the time, otherwise you won’t get the full deduction.
What happens if you don’t use it 50% for business? Do you lose the deduction?
@Lex
You still get part of the deduction, but it’s based on how much you actually use it for business. So, if you use it for business 80% of the time, you can write off 80% of the cost.
You also gotta keep track of the business use percentage. The IRS is pretty strict about that. I used my truck for both work and personal stuff, and I had to keep a log to prove the business miles.
Payton said:
You also gotta keep track of the business use percentage. The IRS is pretty strict about that. I used my truck for both work and personal stuff, and I had to keep a log to prove the business miles.
Yeah, tracking mileage is key. I used an app for that, makes life easier!
@Drew
Same! The app saved me a ton of time, and the records were right there for tax season.
Does anyone know if there’s a cap on how much you can deduct with Section 179? I remember reading about a limit but not sure about the exact numbers.
Teo said:
Does anyone know if there’s a cap on how much you can deduct with Section 179? I remember reading about a limit but not sure about the exact numbers.
For 2024, the deduction limit is $1,160,000. But if you buy more than $4,050,000 in equipment, the limit starts to phase out.
@Harlem
Wow, didn’t realize it was that high. Good to know! What if I don’t hit that amount?
Teo said:
@Harlem
Wow, didn’t realize it was that high. Good to know! What if I don’t hit that amount?
Then you’re good! You can write off the entire purchase price as long as you don’t go over the spending cap.
One more thing to consider is bonus depreciation. You can still get 80% bonus depreciation on top of Section 179 if your purchases exceed the limit.
Teagan said:
One more thing to consider is bonus depreciation. You can still get 80% bonus depreciation on top of Section 179 if your purchases exceed the limit.
Wait, what’s bonus depreciation? I’m kinda new to all this tax stuff.
@Lex
Bonus depreciation lets you write off a big chunk of the cost right away. So if you go over the Section 179 limit, you can still deduct more using this method.
Teagan said:
@Lex
Bonus depreciation lets you write off a big chunk of the cost right away. So if you go over the Section 179 limit, you can still deduct more using this method.
Ohhh, that makes sense. So it’s kind of like an extra tax break?
@Lex
Exactly! It’s a good way to save if you’re making big equipment purchases.
If you’re in Colorado, the rules are pretty much the same as the federal ones. No surprises there. Just make sure to check with a tax pro to be safe.