If you have a business vehicle and are considering a new one, you may qualify for a substantial tax deduction through Section 179 of the IRS tax code. I supplied the facts to Washington Post for this sponsored short video by General Motors Fleet to help educate business owners:
According to the official site for Section 179: For passenger vehicles, trucks, and vans, that are used more than 50% for qualified business purposes, the total deduction for depreciation including both the Section 179 expense deduction as well as Bonus Depreciation is limited to $11,060 for cars and $11,160 for trucks and vans.
Exceptions include the following vehicles:
- Ambulance or hearse used specifically in your business;
- Taxis, transport vans, and other vehicles used to specifically transport people or property for hire;
- Qualified non-personal use vehicles specifically modified for business (i.e. van without seating behind driver, permanent shelving installed, and exterior painted with company’s name).
Limits for SUVs or Crossover Vehicles with GVWR above 6,000lbs
Certain vehicles (with a gross vehicle weight rating above 6,000 lbs. but no more than 14,000 lbs.) qualify for expensing up to $25,000 if the vehicle is financed and placed in service prior to December 31 and meet other conditions.
IMPORTANT NOTE: You have until December 31, so make sure you take the opportunity to see if you qualify lower your tax liability and your vehicle costs.
Check with your CPA to check your Section 179 eligibility and the impact it may have on your tax return. Our Tax Debt Assistance accounting team serves individuals and businesses throughout New England. If you need an experienced New England CPA, give us a call at (855) 479-2400. We are here to help.