Year-End Section 179 Considerations for Ram Commercial Vehicle Buyers

An important deadline is quickly approaching for businesses planning to purchase a new work truck or commercial van in the 2026 tax year.

Section 179 of the IRS tax code allows eligible businesses to deduct qualifying vehicle expenses during the same year the vehicle is purchased and placed into service, potentially reducing taxable income. For 2026, businesses may deduct up to $2,560,000 in qualifying property purchases. However, taking advantage of Section 179 requires careful business usage and year-end timing.

Vehicles Must Be Ready for Work by December 31

To claim a Section 179 deduction for 2026, a qualifying vehicle must be purchased and placed into service by December 31. This means it must be ready and available for its intended business purpose before the year ends.

For example, a contractor in Somerville purchasing a Ram Chassis Cab with a specialized service body should account for the time required to complete the upfit. Ordering the truck or making a down payment in December isn't sufficient if the finished vehicle won't be ready for work until January. Businesses considering a Ram 2500, Ram 3500, or Ram ProMaster should also factor in delivery schedules when planning their purchases.

Business Use Must Exceed 50%

Another important requirement is that qualifying vehicles must be used for business purposes more than 50% of the time. For business owners who use a Ram 1500 for both professional and personal transportation, maintaining accurate mileage records can help establish the vehicle's business-use percentage. Generally, only the business-use portion of the vehicle's cost is eligible for deduction.

Future business usage should also be considered. If it falls to 50% or less during the applicable recovery period, some previously claimed Section 179 deductions may need to be recaptured.

Explore Ram Commercial Vehicles in Flemington, NJ

Ciocca Chrysler Dodge Jeep Ram of Flemington offers Ram trucks and commercial vans for a wide range of business applications. Reach out to our team today to learn more about available models, review configuration options, and explore financing opportunities. It will be our pleasure to assist you.