Tax Savings
Section 179 Tax Savings
Section 179 of the I.R.S. tax code offers significant deductions on qualifying business vehicles.
You may qualify if you
What business vehicles may qualify
- Are a business that purchased or financed qualifying new or used business equipment, including certain business-use vehicles, during the 2025 tax year.
- Put the equipment into service between January 1, 2025, and December 31, 2025.
- Used this equipment for business purposes more than 50% of the time.
- Spent less than $4,270,000 in new or used business equipment.
These are the limits
How much could I deduct
- With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act, the deduction limit for Section 179 increased but you cannot write off more than $1,220,000.
- The total amount of the equipment purchase cannot be more than $3,050,000. It phases out dollar-for-dollar after that, so once $3,050,000 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 andor 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%.
*Not a tax advice. Certain restrictions apply so it’s important to check with your accountant.
