Tax Deduction

Look Forward to Tax Season

Small business owners can qualify for a 2019 Tax Deduction of up to 100% of the purchase price*.

Running a business comes down to your bottom line and now you can make yours even stronger. Under new tax depreciation laws, your business may be eligible to immediately deduct up to 100% of the purchase price of an unlimited number of qualifying vehicles purchased in 2019 for business use*.

All passenger automobiles can qualify for a deduction of up to $18,100 while larger vehicles can qualify for a deduction equal to the full purchase price. To qualify for a 2019 Tax Deduction, the vehicle must be purchased and placed in service during the 2019 calendar year. Please consult your tax adviser for tax implications and savings opportunities.

See below for answers to FAQs about the 2019 Tax Deduction available under Section 179 of the United States Internal Revenue Code.

What vehicles qualify under Section 179?
Passenger automobiles, as defined in the Internal Revenue Code (including SUVs, trucks, and crossovers with Gross Vehicle Weight Rating up to 6,000 lbs.), and placed in service during 2019 qualify for immediate depreciation deductions of up to $18,000 per vehicle. Trucks, vans, and sport utility vehicles as defined in the Internal Revenue Code with a Gross Vehicle Weight Rating over 6,000 lbs. and placed in service during 2019 qualify for immediate depreciation deductions of up to 100% of the purchase price.

What are the limits of Section 179? 
Section 179 does come with limits – there are caps to the total amount written off ($1,000,000 for 2019), and limits to the total amount of the equipment purchased ($2,500,000 in 2019). The deduction begins to phase out on a dollar-for-dollar basis after $2,500,000 is spent by a given business (thus, the entire deduction goes away once $3,500,000 in purchases is reached), so this makes it a true small and medium-sized business deduction. Consult your tax adviser for tax implications and savings opportunities.

How do I learn more about Section 179?
For more information, consult your tax advisor or visit https://www.irs.gov/

How do I take advantage of Section 179?
Shop our inventory online or visit us at any of our locations in Carlsbad and Temecula. Please consult your tax advisor for tax implications and savings opportunities.

*Federal tax benefits are available for vehicles acquired for use in the active conduct of trade or business and may change or be eliminated at any time without notice and each taxpayer’s tax situation is unique; therefore, please consult your tax professional to confirm available vehicle depreciation deductions and tax benefits. For more information, visit https://www.irs.gov/. This advertisement is for informational purposes only, and should not be construed as tax advice, or as a promise of availability or amount of any potential tax benefit or reduced tax liability.