Section 179 Depreciation

THE 100% SOLUTION NEW BONUS DEPRECIATION RULES FOR ALL BUSINESSES

For many years, Section 179 and bonus depreciation* has been a strong year-end closeout incentive for small business owners. The provisions offer significant tax savings for the purchase of motor vehicles used exclusively for business purposes.

For calendar year 2018, the program gets even stronger.  

With new bonus depreciation rules, businesses of every size have a chance to save on qualifying vehicles purchased in 2018 for business use. Purchasers of large trucks, SUVs and vans may be eligible to deduct up to 100% of the purchase price with no per vehicle limits or aggregate annual limit for products with a GVWR rating over 6,000 lbs.** Previously, these vehicles were subject to an annual limit.  

For vehicles under the 6,000 lb. GVWR rating, the new bonus depreciation allows all businesses to deduct up to $18,000 per vehicle for coupes, sedans, small trucks and small SUVs.*** The previous deductions were significantly less with up to $11,160 (coupes and sedans) and $11,560 (trucks and SUVs).  

* 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 www.irs.gov. ** Sport utility vehicles, trucks and vans with a GVWR over 6,000 lbs. and placed in service in 2018 qualify for immediate depreciation deductions of up to 100% of the purchase price. *** Passenger automobiles, as defined under the Internal Revenue Code (including SUVs, trucks and crossovers with a GVWR of 6,000 lbs. or less), and placed in service during 2018 qualify for depreciation deductions of up to $18,000 per vehicle. 2018 Tax Re.