Section 179 Tax Break
What Is Section 179 & What Does It Mean For You?
When owning a business, owners must learn and understand various tax laws to save money and get unique tax benefits. Section 179 of the United States tax law states that a business can deduct up to the full purchase price of a new or used vehicle that has a Gross Vehicle Weight Rating (GVWR) of 6,000 lbs or more and is used for business purposes more than 50% of the time.
Section 179 Deductions & Limitations
With the upcoming 2023 tax year upon us, businesses can write off as much as 1,160,000 dollars worth of vehicles, equipment, and software used by and for the company. Section 179 is vital for small and medium-sized businesses, but there are a couple of main limitations to the tax law.
The amount of money deducted can not be more than the income of the business owner’s trades or the total businesses they own.
If the qualified assets the business owner puts into effect during the taxable year exceeds $2.89 million, including inflation indexing, the deduction allowance phases out.
What Vehicles Does Section 179 Apply To?
Do keep in mind that Section 179 allows business owners to deduct the purchase price of both new and used vehicles and equipment, whether financed, leased, or purchased in full.
What vehicles qualify for a 100% tax deduction at Benna Chrysler Dodge Jeep Ram?
Ram 1500 (some 1500 models with a GVWR of less than 6,000 lbs are only subject to a value loss deduction and not a purchase price deduction)
Ram 1500 Classic
Ram 2500 & 3500
Ram 3500, 4500 & 5500 Chassis Cab
Ram ProMaster
Certain Jeep vehicles qualify for up to 80% of the total purchase price deduction:
Gladiator
Rubicon
All 2023 models with available max towing package
Mojave
2023 models with 3.0-liter EcoDiesel V6
Grand Cherokee (2 and 3-row)
All 2023 and 2024 trim levels, including 4xe
Wrangler
‘23 and ‘24 Rubicon 392
4xe models
2023 3.6-liter Rubicon 4-door with Xtreme Recon Package
It is imperative to note that this content is separate from a discussion with your sales representative and a licensed tax professional to have all of the relevant facts and information presented to you to understand Section 179 fully. Tax law can be challenging to comprehend, and this article is for simple guidance only and not to be used in place of an expert’s advice.
At Benna Chrysler Dodge Jeep Ram, we offer our customers some of the best prices and services. With dozens of new and used vehicles to choose from, our outstanding sales team and finance department will work hard to make sure you drive away happy. And our fantastic service department will take care of your new-to-you vehicle as if it were their own.