Investing in new vehicles for your business can lead to substantial tax benefits under Section 179 of the IRS tax code. By purchasing qualifying vehicles from AutoSmart Fleet, you can deduct the full purchase price from your gross income, significantly reducing your tax liability.
Section 179 allows businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year. This incentive encourages businesses to invest in themselves by providing immediate tax relief.
Typically, when your business buys equipment, the cost is written off gradually through depreciation. However, Section 179 enables you to write off the entire purchase price in the year of acquisition, offering a more immediate tax benefit.
Yes, there are limits to the amount you can deduct under Section 179:
This means the deduction decreases dollar-for-dollar after $3,050,000 is spent, making it particularly beneficial for small and medium-sized businesses.
Businesses that purchase, finance, or lease less than $4,270,000 in new or used business equipment during the tax year are eligible for the Section 179 Deduction. The equipment must be placed into service between January 1, 2024, and December 31, 2024.
To take advantage of Section 179 for the 2024 tax year, ensure that all equipment is financed and in place by midnight, December 31, 2024.
Equipment Purchase: $125,000
Section 179 Deduction: $125,000
Total First Year Deduction: $125,000
Cash Savings: $43,750 (assuming a 35% tax rate)
Equipment Cost After Tax: $81,250