Section 179 Tax Deduction Information

New Mercedes-Benz Sprinter

 Section 179 Tax Deduction Information

What is Section 179 Deduction for Vehicles

The Section 179 of the IRS tax code allows businesses to deduct the full purchase costs of any qualifying vehicles that are bought or financed during the tax year. In other words, if you buy or lease a car for your business, you may qualify to subtract the expense from your income

Section 179 Deduction at Mercedes-Benz of Burlington

Receive a tax-deduction of up to $25,000 when you buy or lease an eligible Mercedes-Benz SUV. Under Section 179, your small- or medium-sized business can receive rewarding tax breaks for investing in itself. This section of the tax code applies to certain leases and purchases, including several new and used Mercedes-Benz models.

The Tax Benefit of Section 179

The normal tax treatment applicable to the lease and purchase of capital equipment is to depreciate the cost over several years. In this way, the company recoups part of the cost through annual tax deductions. Section 179 is a special accounting procedure that permits a small- or medium-sized company to deduct the cost of eligible leases and purchases in the current tax year. The maximum Section-179 write-off of $25,000 might be greater than your outlay in the first year, making your Mercedes-Benz lease or purchase even more affordable.

What Mercedes-Benz Vehicles Are Eligible for Section 179 Deduction?

Your business’ bottom line benefits by the sizeable tax break that Section 179 provides when leasing or purchasing an eligible vehicle. For a leased or purchased vehicle to qualify for Section 179 tax treatment, it must be a crossover or SUV that is not normally used as a personal daily driver. In addition, the vehicle must have a gross vehicle weight rating (GVWR) of 6,000 to 14,000 pounds.

  • Sprinter: This versatile business vehicle is available in Cab Chassis, Minibus, and Van layouts. Whatever industry you’re in, you can upfit the brawny Sprinter for almost any towing or hauling need.

If you are looking to lease or buy a work vehicle eligible for a Section 179 tax write-off, drop by our Burlington Mercedes-Benz dealership and check out our wide inventory. We’d love to discuss with you all the benefits of leasing or buying an eligible Mercedes-Benz vehicle to cash in on a Section-179 tax deduction.