TAX LAW 179

​

Rather than spreading out the depreciation of equipment costs over several years, Section 179 enables you to accelerate your equipment’s deduction and claim it in the first year you acquire it. Section 179 Deduction Limits for 2024 In 2024, the Section 179 deduction limit has been raised to $1,220,000 (an increase of $60,000 from 2023).

​

1. Section 179 Deduction Limits for 2024:

   • The deduction limit for Section 179 in 2024 has been raised to $1,220,000 (an increase of $60,000 from 2023) 1.

   • This means that your business can now deduct the entire cost of qualified equipment up to a total equipment purchase limit of $3.05 million 1.

2. How It Works:

   • Rather than spreading out the depreciation of equipment costs over several years, Section 179 enables you to claim the deduction in the first year you acquire the equipment.

   • If your business acquires equipment between January 1st and December 31st and uses it at least 50% of the time for business purposes, you can deduct it under Section 179.

3. Calculate Your Potential Tax Savings:

   • You can expense 100% of the cost of equipment acquired in 2024 under Section 179.

   • If you plan to finance equipment before the end of the year, use our FREE calculator to estimate your potential income tax savings when you finance equipment this year 1.

4. Requirements for Section 179:

   • Equipment must be purchased and in use before December 31st, 2024.

   • Start the process sooner to ensure you have enough time to use the equipment before the calendar year ends 

​

​

​

List of Vehicles that Qualify for Section 179 in 2024

​

​

Thinking of buying a new or used vehicle for your business?

Business vehicles are one of many great tax write-offs available to you as a business owner.

If the vehicle qualifies you could write off the purchase price of the car or truck, plus the operating expenses if you use it for business.

But before you rush off to go car shopping it’s important you know what a “Section 179 Vehicle” is. And if possible, purchase one of those types of vehicles in order to maximize your tax deductions.

Section 179 of the tax code basically allows you to deduct the full purchase price of a vehicle (or other qualifying equipment) in the year you purchase it.

The Tax Cuts and Jobs Act that was passed in late 2017 also allows unlimited 100% first-year depreciation for the new or used vehicle as long as it is acquired and placed into service between 9/28/17 and 12/31/22.

In other words, if you buy a Section 179 Vehicle it can potentially save you A LOT of money on your taxes.

​

​

So what is a Section 179 Vehicle?

​

These are heavy SUVs, trucks and vans that must have a gross vehicle weight of at least 6,000 pounds. Typically vehicles will list their weight on the side door (so you can check there when you’re shopping).

Here’s an example of some of the vehicles that weigh over 6,000 pounds:

​​

Here is a list of vehicles with a gross loaded weight of over 6,000 lbs that qualify for the Section 179 Deduction. We have tried to make the list as exhaustive as possible; however, you can check the car manufacturer’s website to determine how much the vehicle weighs or you can look inside the driver’s door to verify the GVW rating of the vehicle.

 

• Audi Audit Q7 3.0T Premium

• Audi Q7 3.0L TDI

• BMW X5 M

• BMW X5 XDrive351

• BMW X6 M

• BMW X6 XDrive351

• Buick Enclave 2WD

• Buick Enclave 4WD

• Cadillac Escalade 2WD

• Cadillac Escalade 4WD

• Cadillac Escalade ESV

• Chevrolet Express 2500

• Chevrolet Express 3500

• Chevrolet Silverado C1500

• Chevrolet Silverado C2500

• Chevrolet Silverado C3500

• Chevrolet Silverado K1500

• Chevrolet Silverado K2500

• Chevrolet Silverado K3500

• Chevrolet Silverado 2500HD

• Chevrolet Silverado 3500HD

• Chevrolet Suburban C1500

• Chevrolet Suburban K1500

• Chevrolet Truck Tahoe 2WD LS

• Chevrolet Truck Tahoe 4WD LS

• Chevrolet Truck Tahoe Hybrid

• Chevrolet Truck Traverse 2WD

• Chevrolet Truck Traverse 4WD

• Chevrolet Truck Avalanche 2WD

• Chevrolet Truck Avalanche 4WD

• Dodge Grand Caravan

• Dodge Truck Durango 2WD

• Dodge Truck Durango 4WD

• Ford Truck Expedition 2WD

• Ford Truck Expedition 4WD

• Ford Expedition EL

• Ford Truck Explorer 2WD

• Ford Truck Explorer 4WD

• Ford Truck F-150 2WD

• Ford Truck F-150 4WD

• Ford Truck F-250

• Ford Truck F-350

• Ford Truck F-450

• Ford Truck Flex AWD

• GMC Acadia 2WD

• GMC Acadia 4WD

• GMC Savana C2500

• GMC Savana C3500

• GMC Sierra C1500

• GMC Sierra C2500 HD

• GMC Sierra C3500 HD

• GMC Sierra K1500

• GMC Sierra K2500 HD

• GMC Sierra K3500 HD

• GMC Yukon 2WD

• GMC Yukon 4WD

• GMC Yukon Hybrid

• GMC Yukon XL C1500

• GMC Yukon XL K1500

• Honda Odyssey

• Infiniti QX56

• Infiniti QX80

• Jeep Grand Cherokee

• Land Rover Range Rover 4WD

• Land Rover Range Rover SPT

• Land Rover LR4

• Land Rover Discovery

• Lexus LX570

• Lexus GX460

• Lincoln Navigator

• Lincoln Navigator L

• Lincoln MKT AWD

• Mercedes G550

• Mercedes GL500

• Mercedes Sprinter

• Mercedes Metris

• Mercedes Benz GL350 BlueTec

• Nissan Armada 2WD

• Nissan Armada 4WD

• Nissan NV Passenger

• Nissan NV 1500

• Nissan NV 2500

• Nissan NV 3500

• Nissan NV 1500 S V6

• Nissan NV 3500 S V6

• Nissan Titan 2WD S

• Porsche Cayenne

• Ram ProMaster 1500 Cargo

• Ram ProMaster 2500 Cargo

• Ram ProMaster 3500 Cargo

• Ram Ram 1500

• Ram Ram 2500

• Ram Ram 3500

• Tesla Model X

• Toyota 4Runner 2WD Ltd

• Toyota 4Runner 4WD Ltd

• Toyota Land Cruiser

• Toyota Sequoia 2WD

• Toyota Sequoia 4WD

• Toyota Tundra 2WD

• Toyota Tundra 4WD

• Volkswagen Touareg Hybrid

 

If you use the vehicle entirely for business then you can write off 100% of it. However, if it’s used, say 75% for business and 25% for personal use then you can only write off 75% of it.

Your tax savings will depend on your situation but it’s not uncommon for people to basically get a 20-30% discount on their vehicle once they factor in the tax deductions.

​

​

​

https://www.section179.org/section_179_deduction/ect ion 179 Deduction Section 179 at a Glance for 2020 What is the Section 179 Deduction Most people think the Section 179 deduction is some mysterious or complicated tax code. It really isn’t, as you will see below. Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves. Several years ago, Section 179 was often referred to as the “SUV Tax Loophole” or the “Hummer Deduction” because many businesses have used this tax code to write-off the purchase of qualifying vehicles at the time (like SUV’s and Hummers). But that particular benefit of Section 179 has been severely reduced in recent years (see ‘Vehicles & Section 179‘ for current limits on business vehicles.) However, despite the SUV deduction lessened, Section 179 is more beneficial to small businesses than ever. Today, Section 179 is one of the few government incentives available to small businesses and has been included in many of the recent Stimulus Acts and Congressional Tax Bills. Although large businesses also benefit from Section 179 or Bonus Depreciation, the original target of this legislation was much needed tax relief for small businesses – and millions of small businesses are actually taking action and getting real benefits.