Section 179 is a valuable asset for business owners. It could even be the resource you need to buy one of our MileOne used cars to improve your business. Today, MileOne Autogroup is taking a moment to demystify a common question.
What is Section 179?
Section 179 is a part of the federal tax code that allows taxpayers to deduct the cost of qualifying property as an expense. It applies to tangible property, such as machinery and equipment, and some property improvements, such as roofs or security systems. Vehicles may also qualify if they’re used for business at least 50 percent of the time.
What About Used Cars?
Even if you drive a pre-owned vehicle, you can still claim it. However, the Section 179 deduction can only be claimed the year your vehicle is first purchased (or used), so it must be new to you and your business.
How Much is the Deduction?
Your deduction is based on your vehicle’s purchase price, the type of vehicle you have, its weight, and the percentage of time your car is used for business. Most work-centric vehicles, such as shuttle vans and cargo vans, will qualify for a full deduction, while trucks and SUVs that exceed 6,000 pounds generally qualify for a partial deduction.
Do I Have to Own the Vehicle?
In order to qualify, the vehicle must be purchased outright. If you are interested in financing or leasing, you can still qualify if it’s done through Section 179 Qualified Financing. Your vehicle must also be titled in your company’s name, not yours.
Shop Our Used Car Inventory in Baltimore, MD
The Section 179 deduction is a huge asset for business owners. This is an excellent way to get the vehicle you need for work. Visit MileOne Autogroup to learn more today!
Remember, we’re car people. Double-check with your accountant before making any major decisions with tax implications!