Any vehicle with a manufacturer’s gross vehicle weight rating (GVWR) under 6,000 pounds (3 tons).This post will cover Section 179 vehicles for 2023, specifically. The allowable deduction differs for each group and may be increased annually by the IRS to account for inflation. The Internal Revenue Service (IRS) breaks down the list of vehicles that qualify for Section 179 deduction into three primary groups: Light, Heavy, and Other. Get details on Section 179 Expensing for other types of tangible property.įind a Tax Pro Section 179 Vehicle Types – Light vs. But there are a few limitations placed on Section 179 vehicles, as outlined in the next section. A Section 179 tax deduction vehicle can be purchased new or used but the vehicle must be utilized more than 50% of the time for business purposes.Įven if you use your vehicle partially for personal use, you may be able to take advantage of a Section 179 tax deduction. YES – this includes vehicles!Īutos may be passenger vehicles, heavy SUVs, trucks, and vans that are purchased and put into use in the same year. This could be office furniture, technology, supplies, and other tangible items. The Section 179 tax deduction allows eligible businesses to deduct the cost of machinery and qualifying equipment when filing their taxes. It covers many types of property as a deductible expense, including vehicles. SECTION 179 is one such deduction that both businesses and self-employed individuals can take advantage of. What is Section 179 and how does it apply to my vehicle?Īs a small business owner, you are often able to take advantage of self-employed tax deductions to lower your tax burden. This post will also explain a few important changes to the guidelines around Section 179 vehicles for your 2023 taxes.Ĭontinue reading to learn what vehicles qualify for the full Section 179 deduction. This tax benefit can potentially reduce your tax burden by thousands of dollars.īlock Advisors is here to help you understand if your car, truck, or other automobile made the Section 179 vehicle list for 2023. Many small business owners are pleased to learn that a vehicle they purchased for use in their company may qualify for a Section 179 tax deduction.
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