What is Section 179?
Section 179, a business tax code, is a useful tool that offers tax deductions on select business equipment - such as vehicles - as an alternative to asset depreciation. It gives you a chance to deduct up to $26,200* of a qualifying vehicle from your business's gross income during that tax year-that's up to $5,502 in savings.** In some cases you may even be able to deduct the full purchase price of your vehicle. (Please consult your tax professional to find out if you qualify for the full amount). It's especially helpful for small businesses who want their tax savings right away, rather than receiving them bit by bit over time through depreciation. It gives many businesses the financial leeway to purchase vehicles they need right away, rather than waiting.