Reduce Your Tax Liability with the IRS Section 179 Tax Deduction
Unlock up to $1,160,000 in tax savings by purchasing vehicles from Sierra Motors INC and utilizing the 2024 IRS Section 179 Tax Deduction.
What is the Section 179 IRS Vehicle Deduction?
Near Ottawa IL
The Section 179 deduction allows businesses to deduct the full purchase price of qualifying equipment, including vehicles, bought or financed within the tax year. This incentive encourages business growth and investment, especially for small businesses. Originally known as the "SUV Tax Loophole," Section 179 continues to offer significant tax benefits to eligible vehicles.
While large businesses can benefit from Section 179 and Bonus Depreciation, the primary aim of this legislation is to support small businesses, offering tax relief that allows millions of companies to reduce tax burdens and reinvest in growth.
What is the Tax Deduction Limit?
The maximum deduction for 2024 is $1,220,000, and this applies to both new and used CDJR vehicles. To qualify, vehicles must be financed or purchased and put into service between January 1, 2024, and December 31, 2024.
What is the Spending Cap on Equipment Purchases?
The spending limit for equipment purchases is $3,050,000, after which the deduction begins to reduce on a dollar-for-dollar basis. This spending cap underscores Section 179’s focus as a "small business tax incentive."
What is the Bonus Depreciation?
The Bonus Depreciation rate is 60%, typically applied after the Section 179 spending cap is reached. Note that Bonus Depreciation applies only to new equipment, so consult your tax professional to determine which equipment qualifies.
2024 Section 179 Example Calculation
First Year Write Off ............................... $1,220,000 (2024 Maximum) 80% Bonus First-Year Depreciation ......... $48,000 (updated to 60%) Normal First Year Depreciation ................. $0 (Bonus Depreciation Taken Instead) Total First Year Deduction .......................... $1,268,000 ($1,220,000 + $48,000 + $0) Tax Savings ................................................. $443,800 (cash kept rather than sent to IRS) Equipment Cost after Tax ............................ $856,200 (assuming a 35% tax bracket)
This example provides a "simplified" overview of the Section 179 Deduction for 2024. For more details on limits, qualifying equipment, and Section 179 Qualified Financing, visit Section179.org or consult your tax advisor.
How Do I Qualify for the Section 179 Deduction?
The IRS allows business deductions for vehicles used for business, but limits apply to the amount that can be depreciated and deducted. For 2024, the deduction limit is $1,220,000 for vehicles used by you or other passengers.
For trucks and SUVs with a Gross Vehicle Weight Rating (GVWR) over 6,000 lbs, a partial deduction is available when used for business at least 50% of the time. Specific vehicles include:
- Pickup trucks with a full-size (8’) cargo bed
- Heavy SUVs (up to a maximum deduction of $30,500)
To qualify, your vehicle must be purchased and put into use by December 31, 2024. The deduction applies whether the vehicle is leased, purchased, or financed.
Which CDJR Models Qualify for the IRS Section 179 Deduction?
The Sierra Motors Inc has an extensive inventory of models that may qualify for Section 179. Speak with a sales representative to learn more about eligible pickup trucks, vans, and SUVs. CDJR supports local businesses by offering great deals on commercial vehicles and informing business owners about the Section 179 Tax Deduction.
Additional Section 179 Deduction Rules to Know
Taxpayers need to provide information on their vehicle’s primary use and an estimated value over ten years. This helps determine limits based on personal and business use percentages.
For specific information on which CDJR vehicles qualify, please contact your CDJR sales team. Remember, this is not intended as tax advice; consult your tax professional for guidance on the IRS Section 179 deduction, potential tax savings, and qualifying vehicles.
Purchase Your Next CDJR Business Vehicle Today!
Looking for a new Chrysler, Dodge, Jeep, or Ram SUV, truck, or van for your business? Many models in these categories qualify for the IRS Section 179 Deduction. Explore your options today at Sierra Motors Inc. CDJR and take a test drive!
Disclaimer: The information provided on this page regarding the Section 179 tax deduction is for informational purposes only and should not be considered tax advice. Tax laws are subject to change, and individual circumstances may vary. We recommend consulting with a qualified tax professional to understand how Section 179 may apply to your specific situation. Sierra Motors INC. CDJR does not guarantee the accuracy or completeness of the information presented and is not liable for any actions taken based on this content. Information accurate at date of publishing, refer to Section179.org for most up-to-date specifications.