If you own a business, you may be able to deduct anywhere from 50% to 100% of the amount of money you spend on a qualified vehicle that you use for business purposes and do it all in one year. Section 179 of the US tax code is written to give you tax savings with an eligible vehicle like a Ram heavy-duty work truck or a Ram ProMaster cargo van that you use for your business. Here are a few details of Section 179 tax savings that are available when you buy an eligible vehicle from us at Melloy Chrysler Dodge Jeep Ram in Los Lunas, NM.
How does Section 179 work?
Business owners from Socorro or Albuquerque who buy or lease a qualifying vehicle from our dealership can deduct the entire price from your gross income. Section 179 was developed by the US government to encourage business owners to invest in business-related vehicles. Business owners in Belen and Isleta will appreciate the fact that changes in this regulation have made Section 179 especially helpful for small businesses. Larger businesses can still take advantage of the tax savings but it now gives a variety of business owners welcome tax relief.
Section 179 allows you to get the full business tax deduction in a single year
In the past, a business in Edgewood and Rio Rancho had to write off the purchase of a vehicle a little at a time, year after year, using depreciation. Of course, business owners would have preferred to write off the entire vehicle purchase for the year they bought the vehicle. Section 179 now allows business owners to do exactly that. You can write off up to 100% of the vehicle purchase price for the current year.
How do Section 179 calculations work?
Vehicles that are purchased under Section 179 must be used for business purposes for more than 50% of the time in order to qualify for this deduction. Your deduction is based on the percentage of business use. For example, if you use one of our work trucks for business 75% of the time, you can deduct 75% of the cost of that vehicle when you do your taxes the following year. We invite you to visit with us any time to discuss eligible business vehicles and tax advantages that are available with your purchase at Melloy Chrysler Dodge Jeep Ram in Los Lunas, NM.