As we approach the end of 2023, we at Lynch Family of Dealerships want to ensure you’re aware of the significant tax advantages available to businesses that invest in vehicles before the year concludes.
The Section 179 tax deduction is a fantastic opportunity for small business owners to potentially reduce their tax burden by thousands of dollars. This deduction allows eligible businesses to deduct the cost of machinery and qualifying equipment, including vehicles, when filing their taxes.
At Lynch, we offer a wide range of vehicles across our various locations that qualify for the Section 179 deduction. Whether you’re looking for a Chevrolet, GMC, Chrysler, Dodge, Jeep, RAM, Ford, or a commercial vehicle from Chevrolet, GMC, HINO, & Isuzu, we’ve got you covered.
Here’s a quick breakdown of how the Section 179 tax deduction applies to different types of vehicles:
- Light Section 179 Vehicles: Vehicles with a manufacturer’s gross vehicle weight rating (GVWR) under 6,000 pounds. For 2023, these autos have a Section 179 tax deduction limit of $12,200 in the first year they are used.
- Heavy Section 179 Vehicles: Vehicles with at least 6,000 pounds GVWR but no more than 14,000 pounds. For 2023, a vehicle qualifying in the “heavy” category has a Section 179 tax deduction limit of $28,900.
- Other Section 179 Vehicles: Any vehicle with a GVWR over 14,000 pounds or a vehicle modified for nonpersonal use. For 2023, any vehicle meeting these guidelines is not subject to a Section 179 tax deduction limitation. You may deduct up to 100% of the cost of any vehicle falling into this category.
Remember, the vehicle must be purchased and put into use in the same year to qualify for the deduction. Even if you use your vehicle partially for personal use, you may still be able to take advantage of a Section 179 tax deduction, as long as the vehicle is operated more than 50% for business use.
As we near the end of the year, now is the perfect time to consider investing in a new or used vehicle for your business. Not only will you be adding a valuable asset to your company, but you could also significantly reduce your tax burden.
Our team at Lynch Family of Dealerships is ready and eager to help you find the perfect vehicle to suit your business needs. Visit us at any of our locations in Burlington, Mukwonago, Kenosha, West Bend, or Waterford.
Please note that while we’re here to help you find the perfect vehicle, we recommend consulting with a tax professional to understand how the Section 179 deduction applies to your specific situation.
Don’t miss out on this opportunity to invest in your business and save on your taxes. Visit a Lynch dealership today!
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