Section 179 Tax Deductions
Top of the line vans.
Bottom line tax savings.
Your business could deduct up to $25,900 in section 179 deductions – that’s up to $5,439 in savings.*
Section 179 Tax Savings
Section 179 of the I.R.S. tax code offers significant deductions on qualifying business vehicles.
What business vehicles may qualify?
You may qualify if you:
- Are a business that purchased or financed qualifying new or used business equipment, including certain business-use vehicles, during the 2020 tax year.
- Put the equipment into service between January 1, 2020, and December 31, 2020.
- Used this equipment for business purposes more than 50% of the time.
- Spent less than $3,500,000 on this equipment.
How much could I deduct?
These are the limits:
- You cannot write off more than $1,000,000.
- The total amount of the equipment purchase cannot be more than $2,500,000. It phases out dollar-for-dollar after that, so once $3,500,000 is spent, the deduction goes away entirely.
Section 179 highlights
- Section 179 allows qualifying businesses to deduct up to the full purchase price of certain new or used vehicles, equipment and/or software purchased and placed into service during the tax year.
- To qualify, the percentage of business use for the vehicle, equipment or software must be more than 50%.