Look Forward to Tax Season
Section 179 Savings
What does the 179 tax savings do for me?
- It gives you a chance to deduct up to $25,000 of a qualifying vehicles from your business’s gross income during that tax year – all at once.
- In some cases, you may even be able to deduct the full purchase price of your vehicle. (Please consult your tax professional to find out if you qualify for the full amount).
- It’s especially helpful for small businesses who want their tax savings right away, rather than receiving them bit by bit over time through depreciation.
- It gives many businesses the financial leeway to purchase vehicles they need right away, rather than waiting.
Does my business qualify to get this deduction?
You may qualify if you:
- Are a business that purchased or financed new or used business equipment—including business-use vehicles—during the 2019 tax year
- Put this equipment into service between January 1, 2019 and December 31, 2019
- Used this equipment for business purposes more than 50% of the time
- Spent less than $3,500,000 on this equipment
What are the dollar amount limits on claiming this tax savings?
- You cannot write off more than $1,000,000
- The total amount of the equipment purchased cannot be more than $2,500,000. It phases out dollar-for-dollar after that, so once $3,500,000 is spent, the deduction goes away entirely.
See below for answers to FAQs about the 2019 Tax Deduction available under Section 179 of the United States Internal Revenue Code.
What vehicles qualify under Section 179?
Passenger automobiles, as defined in the Internal Revenue Code (including SUVs, trucks, and crossovers with Gross Vehicle Weight Rating up to 6,000 lbs.), and placed in service during 2019 qualify for immediate depreciation deductions of up to $18,000 per vehicle. Trucks, vans, and sport utility vehicles as defined in the Internal Revenue Code with a Gross Vehicle Weight Rating over 6,000 lbs. and placed in service during 2018 qualify for immediate depreciation deductions of up to 100% of the purchase price.
What are the limits of Section 179?
Section 179 does come with limits – there are caps to the total amount written off ($1,000,000 for 2018), and limits to the total amount of the equipment purchased ($2,500,000 in 2019). The deduction begins to phase out on a dollar-for-dollar basis after $2,500,000 is spent by a given business (thus, the entire deduction goes away once $3,500,000 in purchases is reached), so this makes it a true small and medium-sized business deduction. Consult your tax adviser for tax implications and savings opportunities.
How do I learn more about Section 179?
For more information, consult your tax advisor or visit https://www.irs.gov/
How do I take advantage of Section 179?
Shop our inventory online or visit us at Hoehn Motors Mercedes-Benz. Please consult your tax advisor for tax implications and savings opportunities.
*Federal tax benefits are available for vehicles acquired for use in the active conduct of trade or business and may change or be eliminated at any time without notice and each taxpayer’s tax situation is unique; therefore, please consult your tax professional to confirm available vehicle depreciation deductions and tax benefits. For more information, visit https://www.irs.gov/. This advertisement is for informational purposes only, and should not be construed as tax advice, or as a promise of availability or amount of any potential tax benefit or reduced tax liability.
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