Section 179 Tax Savings
UP TO $30,500 IN TAX DEDUCTIONS*
What is Section 179?
Section 179 is a provision in the business tax code that enables businesses to receive tax deductions for certain equipment—like vehicles—serving as an alternative to traditional asset depreciation. This section allows you to deduct up to $30,500* for a qualifying vehicle from your business’s gross income in the same tax year, potentially translating to savings of up to $6,405.** In some situations, you might even be able to deduct the entire purchase price of your vehicle. (It’s best to consult with your tax professional to see if you qualify for the full deduction.) This provision is particularly advantageous for small businesses that prefer immediate tax savings rather than gradual benefits through depreciation. It provides businesses the financial flexibility to acquire necessary vehicles right when they need them, instead of postponing the purchase.
What business vehicles may qualify?
You may qualify if you:
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Are a business that purchased or financed qualifying new or used business equipment, including certain business-use vehicles, during the 2024 tax year.
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Put the equipment into service between January 1, 2024, and December 31, 2024.
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Used this equipment for business purposes more than 50% of the time.
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Spent less than $4,270,000 on this equipment.
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How much could I deduct?
These are the limitations:
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- You cannot write off more than $1,220,000.
- The total amount of the equipment purchase cannot be more than $3,050,000. It phases out dollar-for-dollar after that, so once $4,270,000 is spent, the deduction goes away entirely.
Section 179 Highlights
Section 179 allows qualifying businesses to deduct up to the full purchase price of certain new or used vehicles, equipment and/or software purchased and placed into service during the tax year.
• To qualify, the percentage of business use for the vehicle, equipment or software must be more than 50%.
In addition to performing well under pressure, businesses can also take advantage of incredible opportunities when they invest in a Mercedes-Benz commercial van from our Riverside Mercedes-Benz dealership thanks to Section 179 tax savings.
These Mercedes-Benz Vans 179 tax deduction incentives give business owners a chance to deduct up to $26,200 of a qualifying vehicle from their business’s gross income during that tax year all at once, and may even enable them to deduct the full purchase price of their vehicle*. This can be especially helpful for businesses who want their tax savings immediately instead of receiving them over time through depreciation and provides many with the opportunity to purchase the fleet vehicles they need right away rather than waiting.
View Lease and Finance Specials
Feel free to give us a call or contact us online at Mercedes-Benz of Riverside for more information or to learn how your business can qualify for our Mercedes-Benz Section 179 tax deduction incentives.
*Please consult your tax professional to find out if you qualify for the full amount