IRS Section 179 Luxury Vehicle Tax Incentives

Grow Your Business With the Section 179 Tax Deduction

The Section 179 deduction was created in order to help small businesses around the country grow. It allows you to write off a dollar amount up to the full purchase price of a qualifying vehicle, as opposed to just claiming depreciation on your return. The team here at INFINITI of Macon has put this page together in order to help you figure out how to take advantage of the IRS Section 179 tax deduction so you can spend less on taxes and more on growing your business.

Section 179 Business Vehicle Tax Deductions

When using Section 179 to write off luxury vehicles, you can potentially claim the entire purchase (or lease) price of the car in question during its first year in service for your business. The deduction is capped at $1.16 million for the 2023 tax year. To qualify, the vehicle must be used for business at least 50% of the time.

The Section 179 deduction is aimed at small businesses, so it phases out as a company's income increases. If your business spends more than $2.89 million on property purchases in 2023, the deduction will begin to phase out. It reaches $0 once your property expenditures reach $4.05 million in the same year. For 2024 and future years, this cap rises slightly.

The Section 179 Tax Write-Off for Vehicles Over 6,000 Pounds

A few categories of vehicles qualify for the Section 179 deduction. The first category is industry-specific automobiles, which include hearses, ambulances, semi-trucks, and other vehicles that are difficult to use for purposes other than business. Cargo vans with no seating behind the front row and at least 6 feet of cargo space qualify, as do shuttles with nine or more seats behind the driver.

Other vehicles that weigh more than 6,000 pounds and less than 14,000 pounds, such as the INFINITI QX80, can also qualify for some or all of the Section 179 deduction. The deduction will be capped at $25,000 for some automobiles, but this is still a significant reduction in your taxes. If you're looking for a luxury SUV that qualifies for this vehicle tax credit, you're in luck.

You can apply the 6,000-pound vehicle tax deduction to cars that you lease as well as ones you buy, whether they are new or used. You can also elect to use the No. 510 deduction instead of the Section 179 deduction, which may be more advantageous for some drivers. We do not claim to be experts in 2023 tax deductions or other aspects of the tax code, so please consult a professional before making a major purchase for your business.

The Spacious and Refined INFINITI QX80

The INFINITI QX80 is a three-row luxury vehicle with a muscular V-8 engine under the hood that produces 400 horsepower and 413 pound-feet of torque. The vehicle comes in seven- and eight-seat configurations. The former has a pair of captain's chairs in the middle row and a three-seat bench in the back, while eight-seat models have two three-seat benches.

The INFINITI QX80 is spacious and well-appointed. It offers 95.1 cubic feet of cargo space if you fold down the second and third rows, which means it can serve as an effective delivery vehicle. The 2024 INFINITI QX80 also boasts a 12.3-inch touch screen, allowing you to manage your music and navigation needs easily.

Our dealership is proud to offer the Section 179 deduction-eligible INFINITI QX80 for sale to drivers in our community. While you may be able to deduct the entire price of the automobile on your taxes, it's also worth noting that we work hard to offer competitive financing to qualifying drivers. Visit us today for an INFINITI QX80 test drive.

FAQ

What is IRS Section 179?

IRS Section 179 is a provision of the tax code that allows you to deduct up to the full price of a vehicle purchased for business on your taxes. This element of the tax code is aimed at helping small businesses grow and prosper. Rules for qualification are a bit complex; please contact us to learn more about which cars you can claim on your taxes after purchase.

Does Section 179 tax deduction apply to used vehicles?

You can use the Section 179 deduction for new or used vehicles. This does not change the amount of the purchase price that you can deduct from your taxes, either. Section 179 is complicated, so be sure to consult a tax professional before making a purchase. Our team can also try to answer your questions if you contact us. We'd love to help you receive a vehicle tax credit.

What vehicles qualify for Section 179?

Cars that weigh more than 6,000 pounds and will be used for business purposes at least 50% of the time can qualify for the Section 179 deduction. The INFINITI QX80 is an example of such an automobile. Whether you need a sleek luxury SUV to add to your fleet or a new delivery car for your small business, this vehicle is a great option.

Can you take Section 179 on a leased car?

It is possible to use the Section 179 deduction on a leased vehicle or piece of equipment. The tax deduction functions in much the same way whether you claim a purchased or leased vehicle. The price you pay to lease the automobile or equipment in question can be claimed up to a certain amount based on your overall business income. You can learn more about this tax provision here.

Is Section 179 going away?

As of this writing in December 2023, there is no announced plan to do away with Section 179. That said, it's always a good idea to consult with a tax professional before making a major business purchase. The team here at INFINITI of Macon is ready to help you pick out a dynamic luxury car that qualifies for the Section 179 tax deduction.