Imagine you’re a business owner looking to purchase a dependable, heavy-duty vehicle for your company—perhaps a large truck or SUV. At the same time, you’re concerned about managing your business taxes effectively. Here’s the good news: the IRS Section 179 deduction is a powerful tool to help offset the cost of purchasing qualifying vehicles for business use, offering significant tax savings.
What is the IRS Section 179 Deduction?
The Section 179 deduction allows businesses to deduct the full or partial cost of qualifying equipment and vehicles purchased and used for business purposes within the same tax year. This provision helps reduce the financial burden on businesses and promotes investment in operational assets.
For vehicles weighing 6,000 pounds or more (GVWR), the Section 179 deduction is especially advantageous. In 2024, vehicles in this category may qualify for deductions up to $30,000, with additional savings available through bonus depreciation.
Which Vehicles Qualify?
Under the Section 179 deduction:
- Heavy SUVs, Trucks, and Vans
- Vehicles between 6,000 and 14,000 pounds GVWR qualify for a partial deduction.
- They can also benefit from bonus depreciation.
- Cargo Vans and Box Trucks
- Vehicles without passenger seating (designed specifically for business) are eligible.
- Specialty Vehicles
- Examples include ambulances, hearses, and certain other commercial-use vehicles.
- Larger Commercial Vehicles
- Vehicles exceeding 14,000 pounds GVWR, such as buses and large trucks, are exempt from SUV-related deduction limits.
Note: Not all vehicles qualify. Passenger vehicles used for personal purposes are excluded, as are sports or hobby-related purchases unless they directly support business operations.
List of Vehicles 6,000 pounds or more that Qualify for Tax Incentives in 2024:
| Make | Model | Approx GVW (Lbs) |
| Audi | Q7 | 6,900 |
| SQ7 | 6,900 | |
| Q8 | 6,900 | |
| SQ8 | 6,900 | |
| BMW | X5 xDrive45e | 7,165 |
| X6 M50i | 6,063 | |
| X7 xDrive40i | 7,143 | |
| X7 M50i | 7,143 | |
| X7 M50d | 7,143 | |
| Bentley | Bentayga | 7,275 |
| Bentayga Hybrid | 7,165 | |
| Bentayga Speed | 7,275 | |
| Flying Spur | 6,724 | |
| Flying Spur V8 | 6,724 | |
| Flying Spur W12 | 6,724 | |
| Mulsanne | 6,173 | |
| Mulsanne Speed | 6,173 | |
| Mulsanne Extended | 6,617 | |
| Buick | Enclave Avenir AWD | 6,160 |
| Enclave Avenir FWD | 6,055 | |
| Enclave Essence AWD | 6,160 | |
| Enclave Essence FWD | 6,055 | |
| Cadillac | Escalade | 7,100 |
| Escalade ESV | 7,300 | |
| Escalade Platinum | 7,100 | |
| Escalade ESV Platinum | 7,300 | |
| Chevrolet | Silverado 2500HD | 10,000 |
| Silverado 3500HD | 14,000 | |
| Silverado 4500HD | 16,500 | |
| Silverado 5500HD | 19,500 | |
| Silverado 6500HD | 23,500 | |
| Express Cargo Van 2500 | 8,600 | |
| Express Cargo Van 3500 | 9,900 | |
| Express Passenger Van | 9,600 | |
| Suburban | 7,800 | |
| Tahoe | 7,400 | |
| Traverse | 6,160 | |
| Chrysler | Pacifica | 6,055 |
| Dodge | Durango | 6,500 |
| Durango SRT | 6,500 | |
| Durango Citadel | 6,500 | |
| Durango R/T | 6,500 | |
| Durango GT | 6,500 | |
| Durango SXT | 6,500 | |
| Grand Caravan | 6,055 | |
| Ford | Expedition | 7,450 |
| Expedition MAX | 7,700 | |
| F-250 Super Duty | 10,000 | |
| F-350 Super Duty | 14,000 | |
| F-450 Super Duty | 16,500 | |
| F-550 Super Duty | 19,500 | |
| Transit Cargo Van T-250 HD | 9,070 | |
| Transit Cargo Van T-350 HD | 10,360 | |
| Transit Passenger Wagon | 10,360 | |
| GMC | Sierra 2500HD | 10,000 |
| Sierra 3500HD | 14,000 | |
| Sierra 3500HD Denali | 14,000 | |
| Sierra 4500HD | 16,500 | |
| Sierra 5500HD | 19,500 | |
| Sierra 6500HD | 22,900 | |
| Yukon | 7,300 | |
| Yukon XL | 7,800 | |
| Honda | Odyssey | 6,019 |
| Infiniti | QX80 | 7,385 |
| Jeep | Grand Cherokee | 6,500 |
| Grand Cherokee SRT | 6,500 | |
| Grand Cherokee L | 6,500 | |
| Wrangler Unlimited | 6,500 | |
| Gladiator Rubicon | 6,250 | |
| Land Rover | Defender 110 | 7,165 |
| Defender 90 | 7,055 | |
| Discovery | 7,165 | |
| Discovery Sport | 6,724 | |
| Range Rover | 7,165 | |
| Range Rover Sport | 7,165 | |
| Range Rover Evoque | 6,724 | |
| Range Rover Evoque R-Dynamic | 6,724 | |
| Lexus | LX 570 | 7,000 |
| Lincoln | Aviator | 6,001 |
| Aviator | 6,001 | |
| Navigator | 7,200 | |
| Mercedes-Benz | GLS 580 4MATIC | 6,768 |
| GLS 600 4MATIC | 6,768 | |
| G 550 4×4 Squared | 7,057 | |
| GLS 580 4MATIC | 6,768 | |
| GLS 600 4MATIC | 6,768 | |
| AMG G 63 4MATIC SUV | 6,724 | |
| Nissan | Armada 2WD/4WD | 7,300 |
| NV 1500 S V6 | 8,550 | |
| NVP 3500 S V6 | 9,100 | |
| Titan 2WD S | 7,300 | |
| Porsche | Cayenne Turbo Coupe | 6,173 |
| Cayenne Turbo S E-Hybrid Coupe | 6,173 | |
| Cayenne Turbo S E-Hybrid | 6,173 | |
| Panamera Turbo S E-Hybrid | 6,244 | |
| Tesla | Model X | 6,000 |
| Toyota | Tundra 2WD/4WD | 6,800 |
| 4Runner 2WD/4WD LTD | 6,300 | |
| Tundra 2WD/4WD | 6,800 |
Eligibility Requirements
To qualify for the Section 179 deduction, vehicles must meet the following criteria:
- Gross Vehicle Weight: The vehicle’s GVWR must be 6,000 pounds or more.
- Business Use: The vehicle must be used for business purposes more than 50% of the time.
- Placed in Service: The vehicle must be purchased and put into active use within the tax year.
- Documentation: Detailed records of business use, purchase receipts, and mileage logs must be maintained.
For luxury SUVs weighing over 6,000 pounds, annual depreciation caps still apply. These vehicles may qualify for a reduced Section 179 deduction but remain subject to certain limits.
Tax Write-Offs for Vehicles Over 6,000 Pounds
If you’re purchasing a vehicle over 6,000 pounds GVWR for business purposes, you can deduct part or all of its cost using the Section 179 deduction. Here’s what you need to know:
- Full vs. Partial Deduction: Vehicles used primarily for business qualify for the deduction, but financing terms may impact how much you can claim in the current tax year.
- Combined Benefits: Section 179 can be used alongside bonus depreciation, allowing for even greater write-offs in the first year.
- Luxury SUV Limits: Certain luxury vehicles have depreciation caps, even if they meet the weight and business-use criteria.
Steps to Claim the Deduction
- Verify Eligibility: Ensure the vehicle meets Section 179 criteria for weight, business use, and purchase timing.
- Document Costs: Keep receipts, contracts, and proof of business use.
- Calculate Depreciation: Use IRS Form 4562 to compute the deduction and attach it to your tax return.
- Consult a Tax Professional: To maximize savings and ensure compliance, work with a qualified accountant familiar with Section 179 regulations.
- File Your Return: Submit the completed Form 4562 along with your tax return before the annual deadline.
Special Considerations for Luxury Vehicles
Luxury vehicles are generally subject to stricter depreciation rules, but certain SUVs, trucks, and vans over 6,000 pounds can still benefit under Section 179. The deduction limit for luxury SUVs changes annually, so consult the latest IRS guidelines or a tax advisor for updated figures.
Maximizing Tax Savings
Taking advantage of the Section 179 deduction requires strategic planning. Here are tips to optimize your tax benefits:
- Plan Purchases: Schedule vehicle acquisitions for when they align with your business’s financial needs and tax strategy.
- Track Mileage: Keep accurate mileage logs for all qualifying vehicles to support claims of business use.
- Leverage Additional Deductions: Combine Section 179 with other deductions, like fuel or maintenance expenses, to maximize savings.
By utilizing the Section 179 deduction for vehicles over 6,000 pounds, business owners can make smart investments that reduce taxable income and support operational growth. With the right approach, this tax incentive can become a valuable tool for managing business finances.
Need Help?
Section 179 can be complex, especially when determining depreciation caps, vehicle usage percentages, and bonus depreciation. You partners at PSA CPA can ensure accurate filings, help calculate deductions, and maximize savings while maintaining compliance with IRS rules.
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