Businesses that purchase new and certified pre-owned vehicles for company use are often eligible for tax deductions like the ones outlined in Section 179. So, what exactly is this tax section, and how do you ensure that the vehicles you purchase are eligible? Lester Glenn Chrysler Dodge Jeep® RAM wants you to get the most out of every dollar, so we’ve compiled this guide.
What is the Section 179 Tax Deduction?
Section 179 helps businesses deduct costs from their taxable income when they purchase equipment. Capital expenditures like office furniture, machinery, and company vehicles often fall into this category. Each purchase must meet certain criteria to qualify for Section 179, so it’s important to understand what makes a new or certified pre-owned vehicle eligible for the deduction.
What Vehicles are Eligible for Section 179?
As long as the vehicle is new to your business, certified pre-owned cars, SUVs, vans, and trucks are eligible for Section 179. However, several other factors will affect the deduction, including:
- Gross Vehicle Weight Rating (GVWR). Different deduction caps apply depending on the vehicle’s size and weight.
- Business use versus personal use. Vehicles must be used for company business at least 50% of the time, or they won’t qualify for the deduction.
- Timing. The company must use the vehicle quickly and will only be eligible for the deduction in its first year of service.
Call us for more information on purchasing or leasing a vehicle that qualifies for Section 179, and speak to your tax professional for guidance on the deductions for which your business may be eligible.
Certified Pre-Owned Vehicles in Toms River, NJ
We can help your business find a terrific certified pre-owned vehicle that qualifies for the Section 179 tax deduction. So, what are you waiting for? Come check out the vast inventory at our RAM dealership in Toms River, NJ, today!
