Section 179 allows small businesses to deduct 100% of the purchase price for a piece of eligible property during the first year that it was put into service for your business. This is a deduction you should understand if you make major purchases of property, equipment, or vehicles for your business. Federal tax code, Section 179 is your streamlined path to deducting the full purchase price of qualifying vehicles and software during the tax year. Originating as a U.S. government incentive to stimulate small to medium business, Section 179 has evolved beyond its "SUV Tax Loophole" days, emerging as a significant hack for SMB businesses.
Immediate Write-Offs: A Game-Changer
Unlike traditional depreciation, Section 179 allows businesses to write off the entire purchase price for the current tax year. For sole proprietors and small business owners, this means the potential to deduct the entire cost of qualifying vehicles in the year of purchase. And Cascade autocenter has a multitude of qualifying vehicles. Most business owners would prefer to write off the entire amount for the year they buy it. In fact, your business might add more vehicles instead of waiting over the next few years. That’s the whole purpose behind Section 179 - to motivate and stimulate the economy and to scale your business in a positive direction. So if you’ve been holding off on purchasing that much-needed work truck – there’s no reason to wait any longer.
Navigating the Limits: Getting Maximum Benefits
While the benefits are substantial, Section 179 does come with certain limits. We advise businesses that the total amount written off is capped at $1,160,000. This phased deduction ensures that small and medium-sized businesses can fully capitalize on this tax advantage.
Qualifying Equipment and Business Usage
To harness the benefits of Section 179, it's crucial that the equipment or vehicles are used for business purposes more than 50% of the time. Cascade autocenter emphasizes the importance of calculating the eligible monetary amount by multiplying the cost by the percentage of business use.To be eligible for the Section 179 deduction, a vehicle must have a GVWR (gross vehicle weight rating) over 6,000 pounds.
Chevrolet Vehicles in the Spotlight
Cascade Autocenter takes pride in highlighting a selection of Chevrolet vehicles eligible for the Section 179 Deduction in 2023-2024. These vehicles not only serve your business needs but also fall under the criteria to qualify for tax benefits in a big way.
- Trucks: Silverado 2500HD, 3500HD, 4500HD, 5500HD, 6500HD
- Vans: Express Cargo Van 2500, 3500, Express Passenger Van
- Large SUVs: Suburban, Tahoe, Traverse
Investing in a dedicated Chevrolet work vehicle provides many advantages. Tax deductions through the Section 179 provision can magnify the value of your pickup truck, cargo or passenger van, or rugged SUV. At Cascade autocenter, we’re proud to support businesses that fall into this category. Business owners and sole proprietors such as: Realtors, Construction Companies, Landscaping Services, Farming and Agriculture, Medical Practices, Transportation Services, Restaurant and Hospitality Industry, Event Planning Services, Home Improvement Services, Interior Design Businesses and Staging Companies, Fitness Centers, Last Mile Delivery and yes, even Car Dealerships!
Seizing the Opportunity with Cascade Autocenter
Cascade Autocenter is proud to educate fellow SMB businesses to delve into the expansive benefits of Section 179, providing a strategic avenue for business owners to enhance their financial positions. Committed to being a thought leader in the dealership space and keeping our customers informed, we also recommend talking to your tax advisor or accountant.
In closing, while traditional write-offs through depreciation have their merits, Section 179 presents a game-changing opportunity for businesses to make immediate investments, contributing to both individual growth and the economic landscape in the good ol’ USA. As a small business ourselves, we recognize the significance of this tax incentive, and we encourage our customers to stay informed as well!