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What Cars Qualify for 2015 Section 179 Tax Deductions?

If you are a business owner and you purchased, or are looking to purchase a new or used vehicle for your business, then you might qualify for the section 179 tax deductions. Whether you pay in cash, are still paying off a loan, or are looking to finance a new work vehicle, you can use the Section 179 deduction to lighten the load and make your work vehicle more affordable.

What Qualifies as a Section 179 Business Vehicle?

Any vehicle that you purchase and use predominantly for business purposes may qualify for the Section 179 tax deduction. Most of the vehicles that qualify for full Section 179 deduction are vehicles that inherently aren’t likely to be used for personal purposes. Some of these vehicles include (from www.section179.org):

Heavy “non-SUV” vehicles with a cargo area that is at least 6ft in length and cannot be easily accessed from the passenger area. Many pickup trucks with full-sized cargo beds quality.

Vehicles that seat more than nine passengers behind the driver’s seat. This includes vehicles like airport and hotel shuttles.

Classic cargo vans. These vehicles have a fully-enclosed driver’s compartment/cargo area, have no seating behind the driver’s seat, and do not have a body section that sticks out more than 30 inches past the windshield.

Section 179 Vehicles Can Be Used

When it comes to qualifying for the Section 179 tax deductions, the vehicle must only be new to you. Buying used is a great way to save money on a new work vehicle, and the team at Palmen Chrysler Dodge Jeep RAM of Racine has something for you.

The vehicle must be used to business at least 50% of the time, and you can only claim the deduction in the tax year that the vehicle was “placed in service.” This means that when the vehicle is ready and available, even if you aren’t using it, you will count that as the vehicle’s tax year. A vehicle cannot receive a deduction if it was first used for personal purposes and then later used as a business vehicle.