What Are the Caps on Section 179?
The 2023 cap on Section 179 tax deductions is $1,160,000 - which is more than it was the previous year.1 Whether you're buying a new Ram truck in Harrisburg, financing a used work van or leasing a qualifying Jeep model, all that counts is that the vehicle is new to you. Simultaneously, this year's Bonus Depreciation stands at 80%.
For Section 179 eligibility this year, the vehicle must be operational before end of day on December 31, 2023, and must be utilized for business purposes more than half the time. The title of the vehicle should bear the name of the company. There are further limits on passenger vehicles utilized for business purposes, so visit us today to learn all you need concerning the 2023 Section 179 tax code.
What Does Section 179 Entail?
Qualified businesses can take advantage of the Section 179 tax deduction to offset the cost of machinery and select equipment during tax reporting -- including vehicles. This initiative -- introduced by the U.S. government -- was established to aid small- and medium-sized businesses in lightening their tax load and investing in themselves.
Sturdy SUVs like the latest Jeep Grand Cherokee qualify, as do passenger vans such as the Chrysler Pacifica. New and pre-owned commercial vehicles like the Ram 1500 and Ram ProMaster® qualify, of course, offering local owners an array of choices for their business and tax advantages.
