Maximize Your Year-End Savings with Section 179

As the year wraps up, savvy business owners can capitalize on the Section 179 tax deduction to reduce their taxable income by purchasing a qualifying vehicle before December 31. This provision allows businesses to deduct the full purchase price of qualifying equipment and vehicles used for business purposes. Here’s how you can make the most of it and a look at vehicles that fit the criteria.

How Section 179 Works for Vehicles

Section 179 is designed to encourage investment in business assets, including vehicles. To qualify, a vehicle must:

  • Be used for business at least 50% of the time.

  • Meet weight requirements (usually over 6,000 pounds GVWR for SUVs, trucks, and vans).

  • Be purchased and placed in service by the end of the tax year.

For 2024, the maximum deduction limit is $1,220,000, but this is subject to income and overall spending caps. This makes December the perfect time to upgrade your business fleet while benefiting from significant tax savings.

Top Benefits of Section 179

  1. Immediate Tax Savings: Deduct the full purchase price in the same year you buy the vehicle, freeing up cash flow.

  2. Flexibility: New and used vehicles qualify, provided they’re “new to you.”

  3. Eligibility with Financing: Deduct the total purchase price even if you finance, spreading out payments while claiming the full benefit.

Best Vehicles That Qualify for Section 179 in 2024

Here’s a list of popular vehicles qualifying for Section 179 based on their gross vehicle weight rating (GVWR) and business suitability:

Trucks:

  • Ford F-250, F-350, F-450, F-550 Super Duty

  • Chevrolet Silverado 2500HD, 3500HD

  • RAM 2500 and 3500 series

  • GMC Sierra 2500HD, 3500HD

SUVs:

  • Cadillac Escalade

  • Chevrolet Suburban and Tahoe

  • GMC Yukon and Yukon XL

  • Jeep Grand Cherokee and Wrangler Unlimited

  • Toyota 4Runner and Sequoia

  • Infiniti QX80

  • BMW X7

Vans:

  • Ford Transit T-250 and T-350

  • Mercedes-Benz Sprinter

  • Chevrolet Express Cargo and Passenger Vans

  • RAM ProMaster

This is just a snapshot; many more vehicles qualify if they meet the weight and business use criteria​

Why Now is the Best Time to Act

Purchasing before year-end is crucial to claim the deduction on your 2024 taxes. With upcoming federal policy changes, including reductions in Section 179 benefits in future years, this might be the last opportunity to maximize savings under the current rules.

How Working with a Broker Simplifies the Process

As an auto broker in Denver, I specialize in matching you with vehicles that fit both your business needs and tax goals. Whether you’re unsure about financing options or which models to consider, I’ll handle the legwork to ensure a smooth and informed transaction. Let me help you navigate financing to enhance your ability to secure a great deal and maximize Section 179 deductions.

Ready to upgrade your business fleet? Contact me today to explore your options before December 31!