Semi Truck Equipment Tax Write-Offs: Section 179

semi trailer tax write off

Section 179 info

Semi truck route drivers and fleets as well as farmers, construction companies, manufacturing facilities and other small businesses are able to take advantage of tax incentives from the federal government under section 179. So, what is section 179 and how can you use it to relieve some of your 2019 tax burden? Continue reading this post to find out how semi trailers and other equipment can be depreciated and written off on your taxes for the year.

The deduction limit for 2019 is one million dollars. The equipment purchase spending cap for 2019 is $2.5 million. You will, however, get 100 percent bonus depreciation for the tax year, 2019, according to Section179.org. From this site, you will be able take advantage of a handy dandy tool for calculating your current deductions for tax time, which is right around the corner.

Semi trucks and trailers are qualifying equipment purchases for the 2019 tax year and the depreciation may be written off using the aforementioned calculator. Recent government stimuli provides for small businesses to write these purchases off on their taxes to create incentive for investing in themselves. Other larger companies may also use section 179 to write off equipment purchases such as semi trailers purchased from Star Trailer.

There are limits, as stated above. The cap is $2,500,000 but begins to phases out “dollar for dollar” for tangible goods purchased in 2019. It stops altogether at $3.5 million, according to Section179.org. It is important to note, however, that bonus depreciation (at 100% in 2019) now also includes used equipment.

You must use the equipment more than 50 percent of the time for business for it to qualify for Section 179. For those purchasing industrial, agricultural, construction and commercial trailers from Star Trailer in Minnesota, this requirement is nearly always met since pretty much all of our customers are businesses.

If you are looking to buy a semi trailer to relieve more tax liability in 2019, Star Trailer has your back. Talk with one of our professional trailer sales experts today and we can help you make a selection for your business.

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