Section 179 Deductions
Understanding Section 179 Deductions in Bakersfield
Tax breaks are vital to many people, especially those with small businesses they need to manage and run. Section 179 allows business owners to deduct the cost of any qualifying vehicle purchases used for their business in the year they are placed in service. This means that if you want to cover the full cost of a commercial vehicle you bought in 2025, you can do so through Section 179.
With Section 179, you can improve your bottom line and cash flow while reducing your 2025 tax liability. Saving on your commercial or specialized vehicle can open up many possibilities for your business. We are here to help you better understand how it all works. Remember, you can always call our team if you have any questions.
Section 179 Deduction Limits At a Glance
There are several things to know about Section 179 deduction limits. Here is the key information:
Full Section 179 Deduction: The full Section 179 deduction is available for new and used vocational trucks and vans.
Heavy SUVs & Trucks: Heavy-duty SUVs and trucks that have a GVW of over 6,000 pounds have a $31,300 maximum Section 179 deduction.
Light Cars, Trucks, & SUVs: All other cars, SUVs, and trucks under 6,000 pounds have a first-year maximum deduction of $20,400.
Business Use: Any vehicle that qualifies must exceed 50% business use. Any vehicle that falls below 50% for business use will be disqualified from the tax deduction.
Deadline: The deadline to take advantage of the Section 179 deductions is December 31, 2025. This means the vehicles in question must be placed in service by this date.
Phase-Out Threshold: The phase-out threshold begins when your business's total purchases exceed $4,000,000. This amount reduces dollar-for-dollar
BMW Vehicles That Qualify for Section 179
With so many limitations and qualifications, we understand that it is not the easiest to determine whether or not your BMW vehicle can take advantage of these savings. BMW vehicles will qualify either under the Heavy SUVs and Trucks category or the Light Cars, Trucks, and SUVs category. The BMW X5, BMW X6, and BMW X7 SUVs all qualify for the Heavy category, while any other BMW vehicle will qualify for the Light category.
More Key Information to Keep in Mind
It's important to keep in mind that there are many ways to save through Section 179, even if your vehicle does not qualify for the full amount. Some buyers, for example, may be eligible for bonus depreciation, which will allow your business to write off at least 40% of your vehicle's depreciation during its first year in use.
Companies must also keep the vehicles they have for their business in use for as long as they are with the company, or they will need to pay back part of the deduction. It is also important to note that used vehicles are eligible; as long as your used vehicle meets all the requirements, it can qualify for a deduction.
Contact Us to Learn More
Please contact our team if you wish to learn more about Section 179 and its tax deductions. With so many terms and conditions, it is easy to get lost when trying to read through them all. That is where we come in. Our BMW team can set up a consultation with you to discuss which vehicles qualify and how they qualify. If you are a business owner or fleet manager, we can schedule a virtual meeting or call to get more in-depth. We are ready to go to any length to support you and your business today.
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