Section 179 Tax Savings

 
Top of the line vans. Bottom line tax savings.
With Section 179 of the I.R.S. tax code, your business could deduct up to $25,900 - that's up to $5,439 in savings![1]



What business vehicle may qualify?

You may qualify if:

  • Are a business that purchased/financed qualifying new/used business equipment, including certain business-use vehicles, during the 2020 tax year.
  • Put the equipment into service between 1/1/20 and 12/31/20.
  • Used equipment for business purposes more than 50% of the time.
  • Spent less than $3,500,000 on equipment.
How much could I deduct?

  • You cannot write off more than $1,000,000.
  • The total amount of the equipment purchased cannot be more than $2,500,000.  It phases out dollar-for-dollar after that, so once $3,500,000 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%.
  • Vehicles must be a crossover, SUV, or truck that isn't ordinarily used for daily personal transportation with a gross vehicle weight rating (GVWR) between 6,000 and 14,000 lbs.
  1. Mercedes-Benz of Southampton

    575 County Road 39
    Southampton, NY 11968

    • Sales: (631) 240-4103
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