Find out what type of Section 179 tax deduction you can take when buying a vehicle for business use.
Explore our 2025 list of vehicles over 6,000 lbs that may qualify for Section 179. Learn about company cars, SUVs, trucks, and specialized financing for maximizing tax deductions.
Several years ago, Section 179 was often referred to as the “SUV Tax Loophole” or the “Hummer Deduction” because many businesses have used this tax code to write-off the purchase of qualifying vehicles at the time (like SUV’s and Hummers). But that particular benefit of Section 179 ...
The Tax Cuts and Jobs Act allowed a practice known as “bonus depreciation” to expand for several years. It’s similar to how Section 179 works, but it covers a wider range of expenses. Through 2022, people could use bonus depreciation to write off eligible assets right away. In 2023, ...
Without Section 179 With Section 179 Liability Before Deduction $100,000 $100,000 This Year’s Deduction $20,000 $60,000 Next Year’s Deduction $20,000 0 Third Year’s Deduction $20,000 0 Tax Liability for This Year $80,000 $40,000 If Taxes are 30%, you owe this much in taxes ...
Do business vehicles qualify for section 179? You might see section 179 dubbed the “Hummer deduction,” because many business owners used the tax loophole to write off vehicle costs. The IRS subsequently tightened the criteria for claiming section 179, with some Ford SUVs, business vans used ...