Using Section 179 Vehicle Tax Deduction on New Bismarck Vehicles
Posted at Mon, Dec 16, 2019 4:00 PM
Small business owners, ranchers, and farmers in Bismarck should take advantage of section 179 tax incentives to get their company equipment and vehicles it needs for the year ahead.
This year's deadline - December 31, 2019 - is almost here, but there's still a bit of time if you haven't thought about what you can do with a Section 179 tax benefit in 2019.
What is Section 179?
The Section 179 tax deduction was enacted to help small businesses like yours. According to Section 179 Org:
Today, Section 179 is one of the few incentives included in any of the recent Stimulus Bills that actually helps small businesses. Although large businesses also benefit from Section 179 or Bonus Depreciation, the original target of this legislation was much needed tax relief for small businesses - and millions of small businesses are actually taking action and getting real benefits.
With Section 179, you could write off the full purchase price of a qualifying commercial vehicle bought or leased in 2019. So if you're thinking about shopping for business vehicles in Bismarck, here is your opportunity!
Does My Vehicle Qualify for Section 179?
As it turns out, you can't just buy any old vehicle, claim that you use it for work, and get all the tax benefits of Section 179. Here are the things you need to know:
- To qualify for Section 179, the vehicle in question must be used for business at least 50% of the time.
- Vehicles considered "typical passenger vehicles" (such as SUVs, vans, and trucks in Bismarck) have a total deduction depreciation limit of $11,060 for cars and $11,160 for vans and trucks.
- Exceptions to the above rule include:
- Ambulances or hearses used only for your business
- Taxis, transport vans, and other vehicles used only to transport people or property for hire
- Qualified vehicles specifically modified for business use (such as a van with no seating behind the driver or a car with a company name painted on the exterior)
- SUVs in Bismarck with a gross vehicle weight rating between 6,000 and 14,000 lbs. can qualify for expensing up to $25,000 if the vehicle is financed and placed in service before December 31.
- Vehicles that are not likely to be used for personal use (such as shuttle vans that can seat nine-plus passengers or pickups with full-sized cargo beds) can qualify for a full Section 179 tax deduction. See the list of qualifying vehicles here.
- Qualifying vehicles for Section 179 can be either new or used.
- They can also be either purchased or leased.
- You can only claim Section 179 in the tax year that the vehicle was placed in service.
- You can't claim Section 179 on a vehicle you purchased for personal use in a previous year, even if you change its purpose to business.
Still a little confused on what qualifies? Check out this article, "Vehicles and Section 179."
Find Your Business Vehicle at Eide Chrysler
With 2019 nearly over, time is running out to take advantage of vehicle tax deductions in Bismarck.
Fortunately, Eide Chrysler has several options in stock. Whether you're looking for powerful trucks for towing or roomy vans for cargo or delivery, we can help you find the right vehicle for your ranch, farm, or business.
If you have any questions about Section 179 or would like some help while shopping, please reach out to us or stop by our store. Your business will thank you!
Customer Account
