Business Vehicle Tax Deduction Advantage
Defender,
Range Rover, Range Rover Sport, Full Size Discovery for Business
Vehicle shown is for illustrative purposes. Actual vehicle image and details may differ. Vehicle in transit.
2024 Tax Advantages for Business Used on Vehicles
Business owners around Parsippany, NJ, can benefit from current IRS rules regarding business use vehicles with Section 179 deductions and Bonus Depreciation. Section 179 is a provision of the IRS tax code designed to help businesses invest in their companies by allowing them to deduct the purchase price of physical equipment like furniture, software, and vehicles. All our Defender, Range Rover, and Discovery vehicles qualify for at least a partial deduction as long as owners use the vehicles for at least 50% business use. There is a cap on the deduction amounts for the year and a spending cap on purchases to ensure it is a true small business benefit, as larger companies and corporations who spend more than the cap can't take the deduction.
- Total Deduction Limit for 2024: $1,220,000
- Spending Cap on Equipment Purchases for 2024: $3,050,000
60% Bonus Depreciation for 2024
With the flexibility of the Section 179 deduction and generous deduction limits for small businesses, the IRS is phasing out the old incremental calculators for bonus depreciation in favor of allowing business owners to deduct the full purchase price for equipment all at once. This year, you can take the deduction plus another 60% in bonus depreciation. The new rules allow businesses to invest in the equipment they need now and provide more room for investing in and growing their operations.
Section 179 Eligible Vehicles and Deduction Amounts
Light Vehicles Eligible for Section 179
For Section 179 purposes, any vehicles used for business purposes weighing under 6,000 pounds fall under the "light" vehicle category. Typical vehicles that fall under this category are sedans, small SUVs, crossovers, and even luxury sports cars. As long as the vehicle is used for a minimum of 50% business use, they qualify for a partial deduction. The limit for light vehicles is $12,200 plus bonus depreciation of 80% for a total cap of $20,200.
Heavy Vehicles - SUVs Under 14,000 pounds
Most of our vehicles will fall under the "heavy" vehicle category. Section 179 allows businesses that purchase heavy vehicles weighing 6,000 to 14,000 pounds to benefit from a partial deduction of up to $28,900 plus 80% bonus depreciation. The following models at Land Rover Parsippany qualify:
- Range Rover
- Range Rover Sport
- Discovery
- Defender
100% Deduction for All Vehicles over 14,000 Pounds
Vehicles that weigh over 14,000 pounds automatically qualify for a deduction of up to 100% of the purchase price with no caps. Vehicles modified for a specific work purpose, like police cars, ambulances, construction equipment, etc., also qualify regardless of weight. These types of modified vehicles typically cannot be used for personal use, so Section 179 allows businesses to deduct the full purchase price.
As additional cap applies for Sport Utility Vehicles (SUVs) in 2024 at $30,500.
Why Choose a Defender, Range Rover, or Discovery for Your Business
Defender, Range Rover, and Discovery vehicles are tough, capable, and generously equipped to upgrade your business capacity. With the flexibility of Section 179 tax deductions, business owners can decide which types of vehicles serve their purposes best. Whether your work takes you to uncharted territory and rough terrain or you want to make a great impression on important clients, a Defender, Range Rover, or Discovery vehicle is an excellent choice for your business needs.
Search New SUVs for Your Business at Land Rover Parsippany
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Land Rover Parsippany
220 U.S. 46
Parsippany, NJ 07054
- Sales: 855-637-9229
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