The following list and informational guide is updated for 2021. For questions regarding vehicle eligibility and rules applicable to your business, please consult with your accountant.
What Vehicles Qualify for the Section 179 Deduction in 2021?
The list of vehicles that can get a Section 179 Tax Write-Off include:
• Heavy SUV’s, Pickups, and Vans that are more than 50% business-use and exceed 6000 lbs. gross vehicle weight can qualify for at least a partial Section 179 deduction, plus bonus depreciation.
• Obvious “work” vehicles that have no potential for personal use typically qualify.
• Delivery type vehicles, like a classic cargo van or box truck with no passenger seating, can qualify.
• Specialty “singular-use” vehicles generally qualify – a hearse, an ambulance, etc.
What Trucks and SUV Models Qualify?
To meet the weight criteria, the manufacturer’s gross vehicle weight rating (GVWR) must exceed 6,000 lbs. You can verify the GVWR of a particular vehicle by checking the manufacturer’s label that’s normally located on the inside edge of the driver’s side door where the door hinges meet the vehicle’s frame.
Here’s a partial list of SUVs and Trucks that might qualify* for a tax deduction.
BMW X5, X6
Cadillac XT5, XT6, Escalade
Chevrolet Silverado, Suburban, Tahoe, Traverse
Dodge Durango, Grand Caravan
Ford Expedition, Explorer, F-150 and larger
GMC Acadia, Sierra, Yukon
Honda Pilot 4WD, Odyssey
Infiniti QX80, QX56
Jeep Grand Cherokee
Land Rover Range Rover, Discovery
Lexus GX460, LX570
Lincoln MKT AWD, Navigator
Mercedes-Benz G550, GLS, GLE, Metris, Sprinter
Nissan Armada, NV 1500, NVP 3500, Titan
Tesla Model X
Toyota 4Runner, Landcruiser, Sequoia, Tundra
*Note: Qualifying for a deduction will depend on stated use, vehicle GVW (which varies with trim packages and options), and more. Please consult with your accountant regarding the eligibility of any particular vehicle.
Can Both New and Used Vehicles Qualify for Section 179?
As with all Section 179 deductions, the vehicle must be new, or new to you. So yes, used vehicles will qualify, along with brand new.
Is There a Time Limit for Using Section 179 for Vehicles in 2021?
Yes - you must buy and put the vehicle into service between 1/1 and 12/31 of the calendar year you are claiming the write-off.
Can I Finance a Vehicle and Take a Section 179 Deduction?
Yes, and this can be a very effective way to get the work vehicle you need, and save on taxes. And if your company is more than two years old with a good credit history, Section 179 Qualified Financing can help you save even more!
Is There More Information Available?
You can visit the IRS website, and in particular, form 4562 for more information.
This page is for general informational purposes only, and is not meant to be tax advice, or imply any guarantee of a particular vehicle qualifying for a Section 179 deduction of any amount. Crest Capital is not an accounting firm and is not responsible for errors or omissions. Crest Capital urges all business owners to check with their accountant regarding taxes, deductions, Section 179 eligibility, and rules applicable to your business.
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