Vehicle Business Deduction
- Ali Khalifa
- Mar 24
- 1 min read
Section 179 is a valuable tax-saving opportunity for business owners who are purchasing business vehicles and other eligible equipment. The types of vehicles that qualify under this section include heavy SUVs, work vehicles, delivery vans, and specialized vehicles. As of 2023, the IRS permits depreciation of up to 80% of the purchase price. However, these advanced depreciation benefits are set to decrease in the following years. According to IRS guidelines, the depreciation allowances will be 60% in 2024, 40% in 2025, and 20% in 2026. For official guidance on Section 179 depreciation rules, refer to IRS Publication 946.
List of Qualifying Vehicles
Heavy SUVs, pickups, and vans (over 6,000 lbs. GVWR with more than 50% business use)
Work vehicles (dump trucks, tractors)
Delivery vans (cargo vans, box trucks)
Specialized vehicles (hearse, ambulance)
*Note: The maximum deduction for heavy SUVs is $30,500 for the year 2024
At MainStreet Advisors, we believe every client is unique and deserves personalized attention with tax prep, tax advisory, payroll, and bookkeeping advisory. That's why we take the time to understand our client's goals and tailor our services to meet their specific needs. Whether you need help with tax planning, financial reporting, or any other tax, bookkeeping, or payroll-related matter, our team is here to help!
Contact us today to learn more about how we can help you achieve your financial goals.
Comments