Does Honda Ridgeline Qualify for Section 179? (Let’s See)

Section 179 is one platform that encourages small businesses and individuals in diverse ways. Many car owners can purchase and invest in qualifying vehicles and tangible materials.

On that note, does Honda Ridgeline quality section 179? 

Honda Ridgeline qualifies section 179. Honda Ridgeline has a gross vehicle weight rating(GVWR) of 5,710 pounds, and it benefits from section 179. Section 179 allows car owners to deduct the purchase cost from their gross income.

You may check whether Honda Odyssey Qualifies For Section 179 or not?

Do Pickup Trucks Qualify for Section 179?

Pickup trucks that are at least 50%-60% business use and surpass 6000 Ibs of gross vehicle weight qualify for section 179. These pickup trucks must fully belong to a business such as driving or towing. 

Hence, if you purchase any vehicle under section 179, you must use it often for business purposes. To qualify for section 179, your car must not exceed 6000 Ibs.

Most pickup trucks have excellent fuel economy and are thus under section 179 and SUVs. 

Section 179 covers both new and used materials. Also, it reduces the cost of tangible goods that are prone to wear and tear. It is usually applied to small business owners and company owners to assist them in expanding their business. 

It offers an immediate expense deduction that company owners can grab to purchase depreciable company materials. Rather than capitalizing and devaluing the assets for a long time.

Below are some of the tangible goods that section 179 covers.

• Computers
• Computer software 
• Office furniture
• Machines(only for business purposes)
• Printing press

The section 179 deduction provides tax comfort to many business owners who are just starting their businesses, especially when purchasing a lot of new equipment for their new office. 

The pieces of equipment must be eligible for the deduction per the details in Section 179 of the tax code.

Furthermore, the purchase cost must be within the dollar sum ranges permissible by the code. 

Interestingly, every equipment and vehicle under Section 179 may be eligible for bonus depreciation. As a result, the bonus depreciation rapidly decreases the business/company owner’s taxation bills. 

However, Section 179 has deduction limits. For example, you can only deduct a maximum of $1,050,000. And the value of the pieces of equipment you purchase is $2,620,000. 

Does Honda Ridgeline Have a Pickup Truck? 

Honda Ridgeline is one of Honda’s finest pickup trucks available in the market and Honda dealership.

Every Honda Ridgeline 2021 model comes with a direct-injected VTEC® V6 engine 3.5 liters. 

This engine can generate 280 horsepower and 262lb. ft of torque. Furthermore, the engine is harmonized with a nine-speed automatic transmission with i-VTM4® torque-vectoring all-wheel drive. 

The all-wheel-drive serves as the standard drivetrain for every model of the 2021 Honda Ridgeline.

Honda Ridgeline is a midsize pickup truck that suits every environment.

Many car owners often use the vehicle to go for family picnics or camping on the outskirts of town. 

It is very comfortable with the provision of heated seats to warm you up during cold days.

Its interior and exterior design is exquisite, with cool tech features that make your driving experience worthwhile. 

Notwithstanding, there are different ways you can extensively use your Honda Ridgeline.

Below are some of them: 

#1. Towing

You can use your  Honda Ridgeline to tow any vehicle as it serves as a super-duty truck. However, the gross vehicle weight of your car must be more than that of the car you want to tow.

Otherwise, the weight will be too much on your Honda Ridgeline, which might lead to an accident. With that said, you have to carry out the logistics before you tow any vehicle. 

#2. Driving

Interestingly enough, many drivers that drive Honda Ridgeline as a side job or full-time job make a decent amount of cash. As a result, you can purchase the vehicle strictly for business or your ride.

#3. Transportation

Honda Ridgeline is affordable, comfortable, and clad with numerous high-tech features. You can purchase the vehicle and use it for daily transportation to work or special occasions. 

Unfortunately, suppose you begin to face problems like transmission issues, inadequate fuel systems, and brakes failure.

In that case, you have to take the car for repairs, maintenance, and replacement of worn-out components. 

Is it better to take Bonus Depreciation or Section 179?

Bonus depreciation and Section 179 are indispensable tools business owners can use to their full advantage.

Well, I’ll highlight the key similarities between them. 

• The bonus depreciation and Section 179 permit significant write-offs in the year an asset will be positioned in service.
  
• Bonus depreciation and Section 179 cover new and used tangible equipment that is not from an inheritance, a gift, or another person or group. 

These key similarities depict the importance of both deductions. Section 179 and bonus depreciation plays a vital role in developing your business.

Section 179 ensures that you invest, purchase, and recover your income.

Whereas bonus depreciation gives you 100% coverage of wear and tear pieces of equipment for a long time without limitations.

For example, if you decide to use Section 179 strictly, you might begin to regret it later when facing constraints. 

Conversely, if you only stick to bonus depreciation, you might begin to regret it terribly, especially when you deduct your total percentage.

So the bottom line is that you need to use both wisely to benefit massively and boost your business. 

Generally, Section 179 and bonus depreciation serve the same function but differ by some significant differences.

Notwithstanding, the ball is in your court, and you can decide which deduction is best for your business. 

Difference Between Section 179 and Special Depreciation Allowance

Section 179 is often mistaken for special depreciation allowance, but they are not the same.

Below are some of the critical differences between Section 179 and the special depreciation allowance. 

• Section 179 depreciation faces limitations by the IRS ($1,040,000 in 2020), and the depreciation reduces further when the dollar amount of purchases exceeds the IRS limit ($2,580,000 in 2020).
  
  Special depreciation allowance does not have any annual boundary on the deduction.
  
• Section 179 gives out considerable flexibility. In Section 179, businesses can subtract any dollar amount of their choice within the boundaries.
  
  Plus, they can divide the deduction among assets according to their selection. 

This division paves the way for businesses to choose which assets to save or cover. On the other hand, companies must deduct their total bonus percentage (100% in 2020).

This process is done for all the assets they choose, which automatically leaves them with no depreciation for the years ahead. 

• Section 179 limits the proportion of taxable income, while business owners can use a special depreciation allowance to generate a net loss. 

These are the key differences between Section 179 and the special depreciation allowance.

Although Section 179 and special depreciation allowance vary, they work hand in hand to assist upcoming business owners. 

So, you don’t have to worry about never-ending taxes and coverage for wear and tear materials.

In addition, it is essential to know the eligibility of your vehicle or equipment to opt for Section 179 or bonus depreciation. 

Conclusion 

Honda Ridgeline is one of Honda’s unique creations, and like most pickup trucks, it qualifies Section 179.

Although Section 179 and bonus depreciation differ, they share key features that assist business owners.

Furthermore, it is best to work hand in hand with section 179 and special depreciation allowance to enjoy a thriving business.