If you’re a small business owner, you may have heard of Section 179 vehicles that can help lower your tax burden. This IRS tax code allows companies to deduct the purchase price of qualifying vehicles to make things easier when tax season comes around. Anaheim Hyundai explains how Section 179 works and which vehicles will qualify.
The Business Use Requirement
One of the key aspects of the Section 179 rule is the business use requirement. In order to qualify for Section 179, the purchased vehicle must be used for commercial purposes more than 50 percent of the time. The final deduction amount is proportional to your percentage of business use, which means that an automobile used exclusively for work yields the maximum write-off.
In order to verify eligibility for Section 179, we highly recommend keeping detailed mileage logs and maintenance records throughout the year. Also, keep in mind that both new and pre-owned Hyundai models are eligible, given they are placed into service before December 31.
Qualifying Models and Weight Limits
Section 179 applies varying deduction limits based on the Gross Vehicle Weight Rating, or GVWR, of the automobile you choose to purchase. SUVs or pickup trucks weighing over 6,000 lbs typically qualify for a much higher deduction compared to smaller coupes and sedans. However, you can still get savings if you purchase a lighter passenger car thanks to standard depreciation rules and partial first-year write-offs. If you have questions about your individual tax situation, we recommend consulting with your accountant.
Choose a Hyundai Vehicle for Your Business in Anaheim, CA
Now that you know how Section 179 can help your business, it’s time to visit Anaheim Hyundai to upgrade your fleet. We have a wide selection of eligible SUVs and sedans that make for excellent business vehicles. Visit us today to get behind the wheel!
