Section 179 Vehicles
What is the Section 179 vehicle tax deduction?If you own and operate a small business or large corporation, the Section 179 tax program allows you to write off the cost of any company car or fleet vehicle as a taxable business deduction. We recommended discussing your options with a tax professional as well as contacting the team at Blackburn Chrysler Dodge Jeep Ram or Blackburn Nissan in Vicksburg.
How much money can I save with the IRS Section 179 deduction?
Commercial tax caps for 2023 varies by vehicle weight and business usage rate.
Passenger cars: $18,000 total deduction per vehicle
Passenger crossovers, vans & trucks: $18,000 total deduction per vehicle
Heavy trucks & commercial vans: $25,000 total deduction per vehicle
Which Vehicles Qualify for the 179 Deduction?
There are over 150 vehicles which qualify for the Section 179 deduction under current guidelines. This list of qualifying models (qualifying Ram models here) includes, but not limited to, all your favorite CDJR and Nissan trucks, vans, and large SUVs that exceed 6,000 GWVR (Gross Vehicle Weight Rating):
Chrysler: Pacifica
Dodge: Durango, Grand Caravan
Jeep: Grand Cherokee, Wrangler Unlimited, Gladiator Rubicon
Wagoneer: Grand Wagoneer, Wagoneer
Ram: 1500 Classic, 1500/2500/3500, 3500/4500/5500 Chassis Cab
Nissan: Armada, NV Passenger, NV Cargo, Titan 2WD S
The full specs on gross vehicle weight ratings and other requirements can be found in the IRS guidelines.
If you'd like more details about purchasing or leasing your Chrysler Dodge Jeep Ram or Nissan vehicle near Vicksburg, MS contact or visit the team at Blackburn Motors.
What is a business usage rate?
Any passenger car, truck, SUV, or van (exceptions apply) that is used for business at least 50% of the time is eligible for the Section 179 expense deduction. Many heavy, non-SUV vehicles, are automatically eligible for the full tax break, regardless of business usage rate.
All Section 179 fleet vehicles, whether new or used, must be purchased and placed in service before the end of the current tax year to be eligible for this write-off.
Does my company qualify for this commercial vehicle deduction?
If your business purchases, finances, or leases a fleet or commercial vehicle or company car during the 2023 tax year, you are eligible to deduct those vehicle taxes as a Section 179 expense, up to the maximum deduction allowance. See your tax advisor to see if you qualify for this federal tax deduction.
DISCLAIMER: Information is sourced from official car manufacturer websites, government databases, and automotive review websites and may not be accurate. Vehicle weights may vary by model year and configuration, and multiple weight classifications may apply. The listed weights are for standard configurations and should be used as estimates only, as actual GVW can differ due to engine size, trim level, towing package, and other factors. We are not liable for errors or inaccuracies in the information presented, and you assume any risk in using it. To verify a vehicle's GVWR of over 6,000-pounds, check the driver's door. For precise information on a specific vehicle's GVW, consult a qualified tax professional.