What is Section 179?

Section 179 is a valuable tax deduction that allows businesses to deduct the cost of qualifying equipment and vehicles purchased or financed during the tax year. Instead of spreading out deductions over time, Section 179 lets you claim the full amount in the same year the asset is placed into service. This deduction offers significant tax savings for businesses looking to invest in their operations. The tax benefits of purchasing new vehicles under Section 179 make it an essential strategy for improving cash flow and reducing taxable income.

WHICH BUSINESS VEHICLES MAY QUALIFY?

To determine if your vehicle qualifies for the Section 179 deduction, consider the following questions:

• Did you purchase or finance a qualifying new or used business-use vehicle during the 2024 tax year?
• Was the vehicle put into service between January 1, 2024, and December 31, 2024?
• Is the vehicle used for business purposes more than 50% of the time?
• Was less than $4,050,000 spent on qualifying equipment and vehicles in 2024?

If you answered “yes” to all these questions, your vehicle may qualify for Section 179 tax savings. Examples include trucks, vans, SUVs, and other vehicles designed for business use that meet IRS Section 179 guidelines.

Vehicles That May Qualify

How much could I deduct?

The Section 179 deduction limit for 2024 allows businesses to deduct up to $1,160,000 of the total cost of qualifying equipment, with a spending cap of $4,050,000. For vehicles, the deduction depends on the type of vehicle:

• Passenger Vehicles: Limited to a maximum deduction of $11,160.
• Heavy Vehicles (6,000+ lbs): Deductions can be as high as $25,000 or more for trucks, SUVs, and vans primarily used for business.

By strategically leveraging these deductions, businesses can offset a significant portion of the cost of new or pre-owned vehicles, enhancing their bottom line.

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Steps to Claim the Section 179 Vehicle Deduction

Claiming your Section 179 deduction for qualifying vehicles is a straightforward process. Here’s how:

• Verify Eligibility: Ensure the vehicle meets IRS requirements for weight, business use, and the purchase/service timeframe.
• Keep Detailed Records: Maintain documentation showing that the vehicle is used for business purposes more than 50% of the time.
• File IRS Form 4562 This form is used to report your Section 179 deductions when filing your tax return.
• Consult a Tax Professional For accurate reporting and to maximize your deductions, work with a tax advisor familiar with Section 179 eligibility requirements.

Maximize Your Business Savings with Section 179

Section 179 provides a powerful way for businesses to invest in their growth while enjoying significant tax benefits. Whether you’re exploring tax advantages of new and used vehicles or looking for ways to lower your taxable income, Section 179 can help. Take advantage of these savings and invest in the tools you need to succeed!

*$28,900 tax deduction for qualifying vehicles based on current Section 179 of U.S. tax code and maximum deduction permitted for such vehicles under Section 179. Vehicles must be purchased for business use. Please consult your tax advisor. This information does not constitute, nor is it intended to be, legal, tax, financial planning or investment advice and should not be relied upon as such.

**$6,069 tax savings based on 21% federal corporate tax rate and eligibility to claim full $28,900 IRS Section 179 tax deduction for qualified vehicles. Your tax rate and eligibility may vary. Please consult a tax professional for more information on your federal tax rate and potential tax savings available to you for qualifying purchases. This information does not constitute, nor is it intended to be, legal, tax, financial planning or investment advice and should not be relied upon as much.

Offer valid through December 31, 2024. For more details, visit https://www.crestcapital.com/section-179-deduction-vehicle-list-over-6000-lbs#section2