Wondering which work vehicles at Gilbert Chevrolet qualify for Section 179? The short answer is – All of them! Section 179 allows business owners to deduct up to 100% of the purchase price depending on the type of vehicle and percentage of business use (50% minimum). Get the vehicles you need to enhance your work capabilities with the flexible deduction designed to help small businesses grow. For more information about Section 179 deductions, it's critical to ensure you consult with a tax specialist. However, our commercial team at Gilbert Chevrolet is happy to go over the basics and help you get the most from your deduction in 2023.
What is Section 179?
Section 179 is a provision of the IRS tax code that allows businesses to deduct the purchase price of qualifying equipment, including furniture, software, supplies, vehicles, and more! Qualifying vehicles eligible for a full deduction include traditional work vehicles unlikely to be used for other purposes like ambulances, tow trucks, cargo vans, and more. Other vehicles like sedans or smaller SUVs can also qualify for a deduction with caps on the deductible amount. Here are the total deduction limits at a glance for the 2023 tax year:
- Deduction Limit for 2023: $1,160,000
- Spending Cap of Equipment Purchases for 2023: $4,050,000
- Bonus Depreciation for 2023: 80%
Light Vehicles Eligible for Section 179
If you are looking for a passenger car like a Chevy sedan, crossover SUV, or smaller truck like the Chevy Colorado, you can deduct up to $12,200 of the purchase price in the first year, plus an extra $8,000 in bonus depreciation, for a total deduction of $20,200. The stipulations are that any vehicles under 6,000 must be used for at least 50% business use, and the deduction amount is based on the percentage used.
Heavy Vehicles Under 14,000 pounds
Vehicles weighing 6,000 to 14,000 pounds fall into the "heavy" category for the Section 179 deduction. Full-size SUVs like the Chevy Tahoe and light-duty trucks like the Chevy Silverado 1500 fall under the heavy category and are eligible for up to a $28,900 plus bonus depreciation of 80% in 2023.
100% Deduction for All Vehicles over 14,000 Pounds
All vehicles over 14,000 pounds or modified for a specific work purpose qualify for a 100% deduction of the full purchase price.
Search New Chevy Inventory or Reliable Used Vehicles at Gilbert Chevrolet
For more information and to find the right vehicle for your work needs, contact our Commercial Vehicle Center team at Gilbert Chevrolet.