At Hall Chrysler Dodge Jeep® RAM Virginia Beach, we help businesses find the perfect work vehicles for the job site daily. Whether you’re looking for a full-sized work van or a powerful pickup like the 2025 RAM 1500, Section 168 can help make your purchase even more affordable. These questions will help you determine if your new purchase qualifies for a bigger deduction.
What Is Accelerated Depreciation?
Section 168 allows businesses to claim more depreciation on work vehicles. This gives you a bigger deduction, so it’s a great way to save on your taxes. These additional savings are only available the year the vehicle enters service.
What Vehicles Are Eligible?
Commercial vehicles, like trucks or vans, with a GVWR (gross vehicle weight rating) of more than 6,000 pounds are eligible. However, these vehicles must be used at least 50 percent of the time for work-related purposes.
How Can I Prove My Use?
Keeping excellent records is essential to claiming your vehicle as a work expense. Track your mileage for every drive and hold onto receipts for gas and repair for a stronger application.
When Will This Program End?
When Section 168 was first implemented in 2022, accelerated depreciation was calculated at 100 percent. The percentage drops 20 percent each year, so this year, vehicles are eligible for a 60 percent depreciation, which will drop to 40 percent in 2025.
How Do My Financing Offers Affect My Deduction?
Your financing plan significantly impacts whether you qualify for this program. Depending on your loan or lease, you may qualify for a smaller deduction or may be able to expense additional work equipment. Our expert RAM financing team will help you learn more.
Save Money on RAM Work Trucks in Virginia Beach, VA
Section 168 makes saving money on your next work truck purchase easier than ever. If you’re planning on expanding your fleet, visit us at our Virginia Beach RAM dealership and talk to our team to find out if you qualify. When you’re done, take one of our mighty RAM pickups for a test drive and supercharge your workflow today!
Just a reminder: we’re truck people, not tax people. While we strive for accuracy, we still suggest talking to your accountant or tax professional about any business write-offs.