Small businesses use things, and when they do, they can claim depreciation on their taxes. However, many small business owners don’t realize that they can also depreciate a significant amount on their SUV or large truck. And, in some circumstances, small businesses can even take full depreciation, and not just for electric vehicles. There is something called the Section 179 deduction that allows you to deduct a large amount from the cost of your new SUV or truck.
The list of Section 179 vehicles is long, and there are several issues with the Section 179 deduction. Much of it comes down to which truck or SUV you buy and how much it weighs.
What vehicles qualify for a Section 179 deduction?
Have you ever wondered why your small business friend has a company SUV that’s huge? Well, part of that reason could be Section 179, which is detailed at 9:25 in the video above. We’re not tax accountants (so check with yours), but in general, the Section 179 deduction allows you to deduct first-year depreciation on some vehicles, and it can be a substantial amount of nearly $27,000 in 2022 for some cars. , trucks and SUVs. That means he can deduct a substantial amount from the price (even financed) of a new truck or SUV he bought between January 1 and December 31.
What trucks and SUVs? Well, according to IRS, vehicles with a gross vehicle weight of more than 6,000 pounds may qualify. There was once something called “Hummer Write-Off”, where companies tried to write off the full cost of an expensive luxury SUV, like a Hummer, therefore there is a limit. You can research the intricacies of the rule at IRS.gov.
Is there a list of Section 179 deduction vehicles?
The Section 179 vehicle list is large, but generally covers trucks and SUVs with a gross vehicle weight rating of 6,000 pounds or more. The vehicle you buy can be new or used, it just has to be new to you. There’s no specific list of qualifying trucks and SUVs, but you can easily check the Gross Vehicle Weight Rating, or GVWR, on the door sticker. Some vehicles that qualify for the Section 179 deduction include pickup trucks and large SUVs, such as the Toyota Sequoia SUV or Ford Super Duty pickup.
What SUVs qualify for the Section 179 deduction?
Many large SUVs, like the 2023 Toyota Sequoia, qualify, and final options like all-wheel drive can affect weight.
Some SUVs that should qualify include:
- audi q7
- BMW X5 and X6
- cadillac escalade
- Chevy Silverado and Suburban
- dodge durango
- ford expedition
- Honda Pilot with 4WD
- Jeep Grand Cherokee
- Lexus LX600
- lincoln navigator
- toyota sequoia
Is there a list of Section 179 deductions for trucks?
Most full-size pickup trucks will qualify for the deduction with options like a heavy four-wheel drive system added. Larger heavy-duty trucks, such as the Ram 2500 and 3500 series trucks, the Ford Super Duty series, and the Silverado HD, can also easily qualify. Some midsize trucks may qualify, but must have the correct options. For example, the 2022 Chevy Colorado can have a GVWR of, coincidentally, 6,001 pounds when selected correctly.
Other trucks that may qualify include:
- ford f-150
- ram 1500
- silver chevy
- gmc sierra
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