Information & Advice - Economic Stimulus Package & Section 179

Vehicles & Section 179

Section 179 is most commonly used for vehicles and can be very beneficial to most small and medium sized businesses. The vehicle can be new or pre-owned. It can be leased, financed, or purchased. The vehicle, however, must be used for business purposes at least 50% of the time.

Qualification standards for vehicles:

1. SUV’s with a Gross Vehicle Weight (GVW) of 6,000 lbs or more
2. Heavy “non-SUV” vehicles with a cargo area at least six feet in interior length that must not be easily accessible from the passenger area.
3. Vehicles that can seat nine-plus passengers behind the driver's seat (such as airport shuttle vans)
4. Vehicles with: (1) a fully-enclosed driver's compartment / cargo area, (2) no seating at all behind the driver's seat, and (3) no body section protruding more than 30 inches ahead of the leading edge of the windshield.

It is available for heavy SUVs to get a reduced Section 179 deduction. The limit for the SUV category #1 is $25,000.  You can, however, take a normal depreciation deduction on the remaining cost. So if you bought a $30,000 SUV, you will be able to deduct $25,000 and take a normal depreciation of 20% on the rest.
Numbers 2, 3, and 4 qualify for the normal Section 179 Deduction limits.

To make sure that your asset qualifies, refer to the IRS's Publication 946.

Act Now!

To take advantage of the incentives and the substantial tax savings, your business equipment must be put in use by year-end. Please contact your tax advisor to learn about the specific impact to your business.

If you need advice on how to utilize Section 179 for your business, feel free to contact us at 800-604-4817 or advice@economicstimulusinfo.com.

HOME | ABOUT | NEWS | INFO | RESOURCES | FAQ | CONTACT

Be sure to always talk to your accountant because every business has unique situations.
The information and content provided is for informational purposes only.
This information is provided as a convenience to you, and First Star Capital
makes no warranties and bears no liability for your use of this information.

Economic Stimulus is a subdivision of First Star Capital.