Section 179 Tax Deduction

The Section 179 tax deduction allows business owners to take a tax benefit for purchasing and using certain property, such as cars, for their business. If you’re a Bernalillo business owner with a qualifying vehicle, you may be able to write off a portion or all of the purchase price of your car in the year it is bought and placed into service. You may also be eligible for the Section 168(k) tax deduction. Learn more about these tax advantages with Land Rover Albuquerque below, and be sure to consult with a tax professional regarding your financial situation. 

Requirements Cars Need To Meet For The Section 179 Deduction

Section 179 is created to encourage businesses to invest in themselves and the economy by buying cars and other equipment they need to improve their processes. Generally, eligible vehicles must be used for business within the first year of purchase, and at least 50% of their operations must be for business purposes. Other qualifying cars include:

• Vehicles with a Gross Vehicle Weight Rating (GVWR) of 6,000 pounds or more
• Vans with seating for nine or more
• Vehicles with no seating behind the driver’s seat
• Vehicles with cargo areas not easily accessible from the passenger compartment
• Vehicles with no body section extending more than 30 inches beyond the windshield

Here are some examples of eligible models that our dealership has for sale near Sandia Park:

• Defender
• Range Rover
• Discovery

Section 179 Vs. Section 168(k) Tax Deduction

Business owners who have a vehicle that qualifies for the Section 179 tax break may also enjoy the Section 168(k) tax deduction. Also known as bonus depreciation, Section 168(k) is not capped by dollar amount and can potentially exceed a business’s total income, unlike the Section 179 deduction. That said, bonus depreciation allows businesses to deduct costs immediately rather than over the life of a qualifying asset. 

Reach Out To Land Rover Albuquerque For More Information

Whether you would like to shop for a qualifying car near Tijeras or have questions about these tax advantages, Land Rover Albuquerque is here to help. Give us a call at (505) 797-3600 today. We look forward to assisting you with a vehicle upgrade for your business in the Albuquerque area.