Section 179 Tax Deduction

What is Section 179?

Section 179 of the IRS tax code allows qualifying businesses to deduct a significant portion of the purchase price of eligible equipment, including certain vehicles, in the year it is placed in service, rather than depreciating it over several years.

For heavier SUVs, Section 179 can also be combined with bonus depreciation. Depending on your situation, this may allow you to write off much or all of a vehicle's business-use cost in the first year. Deduction limits are set by the IRS and adjusted annually, so your tax professional can confirm what applies to you.

Does my vehicle qualify?

In general, a vehicle may qualify if it:

• Has a GVWR over 6,000 lbs. You can find the GVWR on the sticker inside the driver's door jamb of the specific vehicle.
• Is used for business more than 50% of the time. The deduction is based on your business-use percentage.
• Is purchased or financed and placed in service during the tax year you want to claim it.
• Is new to your business. Both new and pre-owned vehicles may qualify.

Don't miss the year-end deadline

To count toward a given tax year, your vehicle must be purchased and placed in service, meaning delivered and ready for business use, by December 31. If you're planning a purchase for this tax year, contact our team early so we can help you find the right vehicle and have it delivered in time.

Call us at 888-699-5851 or stop by Land Rover Spokane in Spokane Valley. We'll help you confirm GVWR and find a vehicle that fits your business. For tax-specific guidance, we recommend speaking with your tax professional.

FAQs

Which Land Rover models qualify for Section 179?

Models rated over 6,000 lbs GVWR may qualify, typically including the Range Rover, Range Rover Sport, Defender 90, Defender 110, Defender 130 and Discovery. Confirm the GVWR on the specific vehicle's door-jamb sticker.

Can I combine Section 179 with bonus depreciation?

Yes. For heavy SUVs, Section 179 is subject to an annual cap, and bonus depreciation may be applied to the remaining business-use cost. Your tax professional can tell you how the two work together for your business.

Do pre-owned vehicles qualify?

They can. A pre-owned vehicle may qualify as long as it is new to your business and meets the other requirements.

Can I finance the vehicle and still take the deduction?

Yes. Financed vehicles can qualify, as long as the vehicle is placed in service during the tax year.

Do leased vehicles qualify?

Section 179 generally applies to vehicles you purchase or finance. Leased vehicles are usually treated differently, so check with your tax professional.

Is there a deadline?

The vehicle must be purchased and placed in service by December 31 to count toward that tax year.

How much can I deduct?

It depends on the vehicle, your business-use percentage, your business income, and the limits the IRS sets each year. A tax professional can calculate your specific deduction.

This information is provided for general informational purposes only and is not tax, legal or accounting advice. Eligibility, deduction limits and tax laws are subject to change and depend on your individual circumstances. Land Rover Spokane does not provide tax advice. Please consult a qualified tax professional before making any purchase decision based on potential tax benefits.