Tax Code 179

SECTION 179 DEDUCTION

WHAT IS THE SECTION 179 VEHICLE TAX DEDUCTION?

Under the IRS tax code, Section 179 allows business owners to write off the purchase price of qualifying commercial vehicles within the tax year. Many businesses are able to deduct tax on fleet cars, commercial vans, work trucks, and similarly sized vehicles. You can review all pertinent Section 179 documentation at www.section179.org.

We also recommend seeking the advice of a tax professional and the Business Certified commercial sales team at Kenosha Nissan for more information and personalized options.

HOW MUCH MONEY CAN I SAVE WITH THE SECTION 179 DEDUCTION?

Commercial vehicle tax deduction limits for 2019 vary by vehicle weight and business usage rate (50% or higher, typically). The current breakdown is as follows:

  • Passenger cars: $11,160 total deduction per vehicle
  • Passenger crossovers, vans & trucks: $11,560 total deduction per vehicle
  • Heavy trucks & commercial vans: $25,000 total deduction per vehicle
  • Section 179 business tax incentives have a maximum cap of $1 million (on $2.5 million in fixed assets) for the 2019 tax year and beyond. Bonus depreciation deductions are also available. Review the 2018-19 H.R.1 bill regarding Section 179 for updates on caps, restrictions, and limitations. (www.section179.org)

WHICH NISSAN MODELS QUALIFY AS SECTION 179 VEHICLES?

Most vehicles that aren't categorized as "personal automobiles" qualify for the full Section 179 tax deduction, including heavy "non-SUV" vehicles, work vans, large trucks, and buses. Certain SUVs and crossovers with a gross weight under 14,000 pounds can be written off as a fully taxable business expense.

While taxes on all Nissan business cars can be deducted, the most common Section 179 Nissan models that are eligible for this IRS tax break include:

  • Nissan TITAN
  • Nissan TITAN XD
  • Nissan NV Passenger
  • Nissan NV Cargo (NV1500, NV2500, NV3500)
  • Nissan Armada
  • Nissan NV200 Compact Cargo

DOES MY COMPANY QUALIFY FOR THIS COMMERCIAL VEHICLE DEDUCTION?

If your business purchases, finances, or leases a fleet vehicle or company car during the 2019 tax year, you are eligible to deduct those vehicle taxes as a Section 179 expense, up to the maximum deduction allowance. All Section 179 fleet vehicles, whether new or used, must be purchased and placed in service before the end of the current tax year to be eligible for this write-off.

WHO DO I CONTACT TO INQUIRE ABOUT A NISSAN COMMERCIAL VEHICLE?

To discuss your fleet options, contact the Nissan Business Certified commercial team at Kenosha Nissan. You could save over $1,000,000 when purchasing or leasing a commercial fleet!


Questions? Call Us at 262-394-VANS