What Are Section 179 Tax Deductions?

Understanding Section 179 deductions can help you save big when tax time comes.

This section of the tax code empowers business expansion, allowing owners to write off the purchase price of business-critical software, vehicles, and equipment. This can be a more efficient form of tax savings rather than depreciation, which takes a significant amount of time before becoming relevant to the savings strategy of a business.

Deductions under Section 179 greatly lower a brand’s tax liability and can be a stimulant to cash flow — which is especially useful for those impacted by periods of recession or inflation.

What vehicles are eligible for deduction under Section 179?

There are several different vehicle types that may be considered eligible for this deduction, including:

• Heavyweight Vehicles: Cars in this class include heavy SUVs, pickup trucks, and vans. To write vehicles off in this category, they must serve at least 50% business use.
• Delivery Vehicles: This class includes box trucks and cargo vans. As with heavyweight vehicles, cars in this class must serve business functions.
• Non-personal Work Vehicles: These can include specialty vehicles such as backhoes, tractors, and dump trucks.

Always check with your tax person to ensure Section 179 deductions are properly conducted and recorded. For more information about vehicle purchases that are eligible for Section 179, please connect with the team at Zimbrick Fish Hatchery Road today at 608-270-7799. We look forward to serving you!