The proprietors of small businesses, particularly during the COVID-19 period, have a pressing desire to minimize their financial outlays wherever possible. This fact is acknowledged by the Internal Revenue Service, which is why it provides a wide range of tax breaks designed to assist companies in both expanding their operations and lowering their overall tax burdens. Suppose you have a small company and have recently purchased or leased a car for that business. In that case, you may be eligible for a tax credit under Section 179. This provision of the tax law enables owners to deduct all or a portion of the expenditures associated with the purchase of a qualified vehicle in the same year that the vehicle is put into operation. In light of this, this essay aims to provide an overview of the cars that qualify for section 179 for 2022.
What is this Section 179 business?
When you acquire a significant piece of equipment for your company, such as a car, you often are not allowed to deduct the whole purchase cost in the first year you own it. Rather than doing so, you capitalize the acquisition and then depreciate, or write off, a part of the asset’s cost over several years.
However, suppose you take use of the Section 179 deduction. In that case, you have the option to recover all or a portion of the cost of an automobile that qualifies as Section 179 property, subject to a certain maximum, by deducting the amount in the year that you put the property into service. When it comes to filing your taxes, this deduction for the first year might save you a significant amount of money. However, as this statement from the IRS makes very clear, there are restrictions, and when you buy a car for your company, you cannot immediately deduct all of the expenditures associated with it.
The Internal Revenue Operation (IRS) has indicated that the maximum section 179 cost deduction for sport utility vehicles that are put in service in tax years starting in 2021 is $26,200. This limit aims to prevent the “Hummer write-off,” which refers to the practice of firms employing Section 179 to write off the expenditures of overly costly SUVs. This was done to prevent misuse of the benefit.
List Of Luxury Cars That Qualify For Section 179 Deduction
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#1. 2022 Mercedes Benz G-Class
- Price: $134,300
- Engine: 4.0 L Twin Turbo Premium Unleaded V-8
- Transmission: 9-Speed Automatic Transmission
- Fuel Mileage: 17 mpg city/19 mpg highway
The 2022 Mercedes-Benz G-class is in a league of its own when it comes to off-road capabilities and luxury pedigree. The Geländewagen is a luxury version of the Ford Bronco or Jeep Wrangler. In spite of the fact that Mercedes’ retro-styled, luxuriously fitted SUV has a six-figure price tag and upmarket equipment like massaging front seats, we are convinced that few of its affluent owners would ever push its stratospheric limits off-road, even if they can afford to do so Even while it has some resemblance to its 1979 predecessor, which was based on an armored convoy, the 2022 G-wagon has a more refined ride and a wealth of new technologies and cars that qualify for section 179 deduction. It’s as at home with a group of adults on their way to see a Broadway musical as it is with a group of children. A 416-horsepower V8 powers this top-of-the-line luxury SUV. It has a $154,520 MSRP and a GVWR of 6,945 pounds, which makes it eligible for the SUV Section 179 deduction of $26,200 for business owners.
- Chops for the dirt
- An instantly recognizable look
- A bespoke interior design service
- Inefficient use of gas
- Entering the cabin, I could hear everything outside
- There is currently no electric vehicle (EV) version available
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2. 2022 Tesla Model X
- Price: $122,440
- Engine: Electric
- Transmission: 1-Speed Automatic Transmission
- Fuel Mileage: 89 mpg city/90 mpg highway
The 2022 Tesla Model X exemplifies the EV manufacturer’s brand philosophy. It is a unique car in the emerging EV-crossover industry, with its unusual Falcon-wing rear doors, but it is expensive. A Plaid model with three motors and 1020 horsepower is expected to go from 0 to 60 mph in approximately 2.5 seconds. Standard equipment for the Model X includes two electric motors, each providing 670 horsepower. When will Tesla’s mega-motor variant be available? Tesla estimates that it will arrive in late 2022. The Model X is impressively agile for a vehicle of its size and weight, given its size and electric cars that qualify for section 179. The inside of the Model X is a study in simplicity, with a big touchscreen dominating the dashboard and providing simple access to the majority of the vehicle’s features. The third row of seats can accommodate the whole family, and the captain’s stools may be fitted to the second row.
- Exhilarating speed
- For an electric SUV, it has a lot of range
- The extensive feature set and cutting-edge technologies
- There’s a lot of room for stuff in the back
- Astonishing starting point
- Third-row chairs are squishy and uncomfortable
- Awful conditions in the cabin
#3. 2022 Range Rover P525
- Price: $115,800
- Engine: 5.0 L Gas V-8
- Transmission: 8-Speed Automatic Transmission
- Fuel Mileage: 19 mpg city/24 mpg highway
The Range Rover is an excellent example of a huge luxury SUV. You can reach where you’re going fast with four engine choices, including two turbocharged straight-six-cylinder engines and two supercharged V8 engines. The inside is sleek and quiet, offering five people luxurious seating. The fuel efficiency is above average for the category, the ride quality on paved roads is unmatched, and very few off-road situations provide even the smallest obstacle.
On the other side, the Range Rover lags behind its peers in terms of load capacity, and several of its competitors provide more controlled handling and luxury cars that qualify for section 179. In addition, the Land Rover InControl infotainment system, which has been criticized in the past, makes an unwanted debut.
- Engines with a wide range of choices
- A master of the off-road
- Luxurious and spacious
- The infotainment system is difficult to use
- Rivals have more cargo room
- The starting price is high
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#4. 2022 Chevy Silverado 3500 Duramax Diesel
- Price: $68,600
- Engine: 6.6L V-8 gasoline or E85 FlexFuel
- Transmission: 10-Speed Automatic Transmission
When you ask whether you can have a certain feature for the car you want to drive, getting a “yes” is one of the best feelings in the world. You can purchase the Duramax diesel engine for your Chevrolet Silverado 3500HD, regardless of the trim level you choose. Expect to pay more for this engine since it is the enhanced choice; nonetheless, it provides the power, performance, and lifespan that you want in your heavy-duty vehicle. This heavy-duty pick-up truck has a V8 engine with 445 horsepower that can pull up to 36,000 pounds and is equipped with towing capacity up to that amount. Its Manufacturer’s Suggested Retail Price (MSRP) begins at $40,700, and because of its long bed, company owners are eligible for a Section 179 deduction of the whole purchase price.
- Torque is plenty with the stock engine
- Exceptional capacity for both freight and payload
- Excellent ability to pull a trailer
- The basic model has a lot of high-tech options
- A wide range of advanced driver-assistance functions is offered to customers
- All models have a need to drink
- Purchasing a high-end model will set you back a considerable sum of money
#5. 2022 Dodge Grand Caravan
- Price: $29,025
- Engine: 3.6 L Regular Unleaded V-6
- Transmission: 6 Multi-Speed Automatic Transmission
- Fuel Mileage: 17 mpg city/25 mpg highway
It seems that rumors about the demise of the Dodge Grand Caravan have been considerably overblown, as the ancient van will continue to be produced at least until the 2020 model year. The Grand Caravan is essentially from a different decade and does not come equipped with any driver-assistance systems, which are often included as standard equipment in its more up-to-date competitors. The same can be said about its infotainment system, which does not possess either a user-friendly interface or hardware that can compete with similar offerings from other manufacturers. On the other hand, the Dodge Grand Caravan provides a practical and versatile interior that comes standard with Stow ‘n Go seats for the second row, a sturdy interior, and affordable pricing. It is the most cost-effective option to get into a new minivan; nevertheless, before you go ahead and do it, we strongly advise you to consider whether or not this is something you desire.
- The journey was pleasant
- This home’s interior is flexible and adaptable
- The powertrain is quite efficient
- High cost
- It is already becoming old
- Avoid renting if you can
- Said Pacifica is more enticing
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#6. 2022 Ford Transit
- Price: $41,665
- Engine: 3.5 L Regular Unleaded V-6
- Transmission: 10-Speed Automatic Transmission
When it comes to overall vans, the 2022 Ford Transit has the most sought skill set that is now available. In the same vein as its primary rivals, the Mercedes-Benz Sprinter and the Ram ProMaster, the Ford Transit is extremely customizable and has a lot of practicality. The Ford Transit comes in a variety of configurations, including cargo, crew, and passenger versions, each with its own roof height and wheelbase options. The engine is either a V-6 with 275 horsepower or a twin-turbo V-6 with 310 horsepower. The turbocharged engine is the only one that is suitable with an all-wheel drive system; the other engine can only be paired with a rear-wheel drive and a 10-speed automatic transmission. Are you in need of a trailer pull? Each variant of the 2022 Ford Transit can haul up to 7,500 pounds, and it comes equipped with a variety of driver assistance features. The ease with which the large van can be maneuvered and the peace and quiet within the cabin are two of the primary reasons why we chose to include it on our list of Editors’ Choice vehicles. The manufacturer’s suggested retail price for this huge passenger van is $41,945, and it has the ability to accommodate 15 passengers. Because of its ability to accommodate many passengers, the Transit is eligible for the cars that qualify for section 179 2022. That is, providing the asset is used entirely for commercial purposes, owners of businesses are eligible to deduct the whole purchase price from their taxes during the first year of service.
- Refined driving manners
- New EV propulsion option
- Modernized technology
- Need more baggage tie-downs
- Basic models lack features
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#7. 2022 Lincoln Navigator
- Price: $78,965
- Engine: 3.5 L Twin Turbo Premium Unleaded V-6
- Transmission: 10-Speed Automatic Transmission
- Fuel Mileage: 17 mpg city/23 mpg highway
The 2022 Lincoln Aviator is a wonderful example of a premium SUV with three rows of seating. The Aviator offers a sophisticated cabin that is equipped with spacious first- and second-row seats, a large cargo compartment, and an entertainment system that is very simple to use. It has a twin-turbo V6 engine, which contributes to its quick acceleration, and its suspension creates a calm and deliciously smooth ride for the driver and passengers. A wide variety of driver assistance systems, such as monitoring for blind spots and automated emergency braking, are included as standard equipment. In comparison to many other premium manufacturers, the warranty on a Lincoln automobile is far longer. The Aviator has very few and minor flaws that need to be fixed. If we want to be picky, the third row isn’t designed for adults, and the hybrid model isn’t exactly the most economical in fuel use.
- Rapid acceleration
- Cushy ride qualities
- Large load capacity
- Elegant interior
- User-friendly infotainment system
- Compact third-row seats
- An expensive, ineffective hybrid system
FAQs About Cars That Qualify For Section 179
What vehicles are eligible for Section 179?
Passenger cars, large SUVs, trucks, and vans utilized at least half the time for business purposes are generally eligible for a Section 179 tax deduction. For example, you may deduct the cost of buying a new pick-up vehicle for your pool cleaning service.
Are cars eligible for 179 deduction?
In a general sense, the Section 179 tax deduction is applicable to passenger cars, large SUVs, trucks, and vans provided that they are utilized for business-related activities at least fifty percent of the time. For this reason, a firm that cleans swimming pools may deduct the cost of purchasing a brand-new pickup vehicle that it uses to go to and from its clients’ homes.
What vehicles qualify for the Section 179 deduction in 2022?
In order to conform to the weight requirements, the gross vehicle weight rating (GVWR) of the manufacturer must be more than 6,000 pounds. You can determine the GVWR of a certain vehicle by looking at the label that was placed there by the manufacturer. This label is often attached to the inner edge of the driver’s side door, just where the door hinges meet the frame of the vehicle.
The following is a list of cars that qualify for section 179:-
- Audi Q7
- BMW X5, X6
- Buick Enclave
- Cadillac XT5, XT6, Escalade
- Chevrolet Silverado, Suburban, Tahoe, Traverse
- Chrysler Pacifica
- Dodge Durango, Grand Caravan
- Ford Expedition, Explorer, F-150 and larger
- GMC Acadia, Sierra, Yukon
- Honda Pilot 4WD, Odyssey
Can I write off 6000 lb vehicle 2022?
In 2022, what kinds of automobiles are eligible for the deduction provided by Section 179? Heavy SUVs, pickup trucks, and vans that weigh more than 6,000 pounds and have a commercial usage percentage of more than 50 percent are all eligible for a write-off under Section 179 of the Internal Revenue Code.
Included on the list of vehicles that are eligible for a tax write-off under Section 179 are the following: Heavy SUVs, pick-up trucks, and vans used for more than half their time in a business capacity and have a gross vehicle weight greater than 6000 pounds are eligible for at least a partial deduction under Section 179, in addition to bonus depreciation. In most cases, cars that are obviously used for “work” and have no potential for personal usage are eligible. It is possible to qualify with some types of delivery vehicles, such as an old-fashioned cargo van or a box truck that does not have passenger seats. In general, vehicles with a “single usage” like a funeral or an ambulance are eligible for this category.