Drive Your Business Forward:
How Buying A Classic Truck Can Be A Smart Tax Move

Why drive to a site visit or client consultation in a boring white work truck when you can pull up in an eye-catching, conversation-starting, brand-building asset on wheels? Thanks to certain tax incentives offered by the Internal Revenue Service (IRS), the idea of using a classic truck restomod from Velocity Restorations as a business vehicle can become a reality for you.

Let’s examine how choosing a tax-deductible classic truck for your business can be a powerful tool for growth and savings. Woodside Credit, Velocity’s chosen partner in classic car financing, also has some extra helpful tips regarding tax law questions related to classic and collector cars.

Disclaimer: This article is for informational purposes only and should not be considered financial or legal advice. Please consult with a certified accountant or an IRS representative for comprehensive details and guidance on the applicability of any related tax incentives.

What is IRS Section 179?

Section 179 of the IRS tax code enables businesses to immediately deduct the full purchase price of qualifying equipment, including vehicles. This provision encourages businesses to reinvest in essential assets by making the cost of such purchases more financially manageable through significant tax savings. Under Section 179, businesses can deduct a certain amount of the cost (up to a maximum dollar amount) of eligible equipment, offering a significant incentive to buy, upgrade, or replace necessary vehicles and equipment.

To qualify for the Section 179 deduction, a vehicle must be used for business at least 50 percent of the time, and it must be purchased and put into service within the tax year. Additionally, certain vehicles can receive greater benefits under Section 179 based on weight. Vehicles with a Gross Vehicle Weight Rating (GVWR)* of over 6,000 pounds but less than 14,000 pounds are eligible for a larger deduction than lighter vehicles, as they meet the IRS’s criteria for “heavy” business use. This is particularly advantageous for business owners who rely on trucks, SUVs, or vans for operations. These heavier vehicles often qualify for a complete write-off, up to the maximum limit allowed for Section 179 in the tax year, making this incentive especially relevant for industries requiring substantial or specialized vehicles.

The IRS further supports these deductions with a bonus depreciation provision. By combining Section 179 with bonus depreciation, businesses can write off a significant portion—or even the entire purchase cost—of a qualifying vehicle within the year it is purchased. This can drastically reduce the initial financial impact, allowing business owners to quickly recoup a portion of their investment.

*GVWR is the maximum safe weight of a fully loaded vehicle, including the weight of passengers, cargo, and payload.

Three Things To Ask Your Accountant About Vehicle-Related Tax Incentives

• Business Use Requirement: To qualify for the deduction, the vehicle must be used more than 50 percent of the time for business purposes. Personal use may disqualify or reduce the allowable deduction.
• Depreciation Cap: While Section 179 allows for the immediate expensing of qualifying vehicles, the total deductions are limited annually. Ensure that your purchase aligns with current IRS regulations and caps.
• GVWR Requirements: Just about any passenger vehicle can qualify for some sort of business-related tax deduction if used properly, but vehicles with a GVWR between 6,001 pounds and 13,999 pounds receive the largest tax benefits.

Restored Classic Trucks as a Business Asset

For those who appreciate classic trucks and seek to incorporate them into their business, the 6,000-pound GVWR threshold offers an exciting opportunity. Many larger restored classic trucks meet or exceed this weight requirement, allowing business owners to benefit from substantial tax deductions while elevating their brand image. Choosing a restored classic truck that is used primarily for business enables owners to enjoy the vehicle’s unique aesthetic appeal and maximize tax benefits, as these vehicles can serve as functional assets eligible for a deduction.

A vintage truck can serve as a powerful marketing tool, helping your business stand out from competitors. When potential clients or partners see a beautifully restored classic truck with your business logo, it creates a lasting impression of quality, reliability, and uniqueness. It’s a brand statement on wheels, catching attention wherever you go, whether you’re parked in front of a client’s office, at an industry event, or simply driving down the highway.

Moreover, restored classic trucks can attract considerable attention on social media, where visuals play a central role. Featuring your truck in posts can boost engagement, potentially going viral among enthusiasts and supporters. Customers today are increasingly attracted to businesses with personality and character, and a classic truck captures both in spades.

In addition to their marketing appeal, restored classic trucks often retain or even appreciate in value, unlike most vehicles that depreciate over time. While traditional cars and trucks lose value the moment they’re driven off the lot, classic vehicles can hold or increase in value, making them a worthwhile investment for the business. This is a significant consideration for businesses thinking long-term, as the resale value of a restored vehicle could counterbalance some initial expenses, including purchase and restoration costs.

Help Your Business Stand Out With A Velocity Modernized Classic

Restored classic trucks can be an excellent choice for businesses looking to make a memorable impression, and Velocity Restorations offers numerous options. While Velocity builds seven modernized classics, the Chevy K5 Blazer, Ford F-250, and International Scout II meet the requirement to help you maximize this tax incentive to its fullest potential. Choosing classic truck restomods such as these not only helps with marketing and brand visibility, but these trucks are also extremely practical as we design and engineer them to be reliable and comfortable daily drivers. Additionally, we make buying a classic truck easier as we accept trade-ins and can help you find the right financing option.

Conclusion

Incorporating a classic truck into your business strategy could be both a passion-fueled decision and a financially smart move. The vehicle you choose can be one of the most impactful and creative assets you can purchase for your business. Not only can this vehicle make a bold statement about your brand, but it can also double as a savvy tax strategy.

The nuances of tax law, particularly with specialized deductions like Section 179, can be complex. Consulting with a certified public accountant (CPA) or tax professional will ensure you comply with IRS rules and maximize the benefits for your specific situation. The idea of using a classic truck as a work vehicle may seem like a dream, but it can be a reality for you.