Section 179 Tax Deduction for Vehicles

Find out if you can deduct your business
vehicles using the Section 179 deduction.

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What is the Section 179 Deduction for Vehicles?

Allows business owners to:

Purchase new or used qualifying equipment

Purchase new or used qualifying vehicles

Deduct up to $25,000 for SUVs and pickups between 6,000 lbs GVWR and 14,000 lbs GVWRr

Deduct up to $25,000 for SUVs and pickups between 6,000 lbs GVWR and 14,000 lbs GVWR

Improve cash flow for next year

Improve cash flow for next year

How Section 179-Qualifying Vehicles Can Help You

The Vehicles You Need icon

The Vehicles You Need

Get on the road with new or pre-owned vehicles eligible for Section 179 with business equipment financing or leasing from National Funding.

The Deduction You'll Love icon

The Deduction You'll Love

Section 179 rules for vehicles allow you to deduct part or all of your vehicle depreciation in the same year you start using the vehicle.

How the Section 179 Tax Deduction for Vehicles Works

Vehicles that are used primarily for business reasons may qualify for the Section 179 deduction. If you have a qualifying business car, truck, SUV or van, you may be able to deduct the vehicle’s depreciation from your taxable income.

1

Purchase

or lease a qualifying vehicle and put it to use for your business before December 31st

2

Deduct

the cost of the vehicle, up to the current limits, from your business taxes in the year you put it into use

3

Save

money on the purchase or lease of business vehicles through tax savings

Section 179 Savings Calculator

See how much you can save with the Section 179 Tax Deduction.

$80,000
Select Tax Rate
Slide to Select Equipment Cost $ Amount
$10k$2.5M

Section 179 Deduction

Up to $1M

$80,000

Cost of Equipment

After Tax Savings

$52,000

Cash Savings

at 35% tax bracket

$28,000

This calculator is intended to provide a potential tax scenario that may not apply to your business. Consult your tax professional to determine tax implications and benefits for your business.

How Do You Apply for Business Vehicle Financing?

How to Apply steps

FAQs: Section 179 Tax Deduction for Vehicles

Can I deduct a vehicle sometimes driven for personal use?
Vehicles must be driven more than 50% of the time for qualified business use. The vehicle must also be titled in the name of the business. The commute to and from work doesn’t count as business use and is considered personal use.
Do any vehicles qualify for a full deduction?
Certain work vehicles that are unlikely to be used for personal reasons, are fully deductible under the Section 179 rules for vehicles. These include passenger vans with nine or more passenger seats behind the driver, such as hotel shuttles, as well as an enclosed cargo compartment with no seating behind the driver. For more vehicle types that qualify for the full deduction, check out the latest information from the IRS.
Can any normal passenger vehicles qualify as work-related vehicles for the full deduction?
Some types of vehicles are considered by the IRS to be business-only vehicles even though they are passenger vehicles. This includes vehicles like hearses and taxis.
Can I purchase or lease a used vehicle and deduct the cost using Section 179?
Yes, as long as a vehicle is new-to-you and not purchased from a family member, you should be able to claim all or part of the vehicle using the Section 179 deduction.

Resources for Section 179 Tax Deduction for Vehicles


What Type of Equipment Can Be Deducted as Section 179 Qualifying Property?

What Type of Equipment Can Be Deducted as Section 179 Qualifying Property?

Find out what you can deduct for the Section 179 deduction, including information regarding vehicles. This post also includes a list of non-qualifying equipment. You can also use this article to learn more about how to lease or finance business vehicles eligible for the Section 179 tax deduction.


Bonus Depreciation vs. Section 179: What's the Difference?

Learn the difference between the Section 179 deduction and bonus depreciation. Find out how each works and what to consider before taking your deductions.


IRS Form 4562 Instructions: How to Nab Your Section 179 Deduction

IRS Form 4562 Instructions: How to Nab Your Section 179 Deduction

Get the information you need on how to read and understand the IRS form you must complete to get the deduction. This article walks you through each section to help you better understand how to take your deduction.


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Products offered by National Funding Inc. and affiliates are business products only. The products may be provided by third parties and subject to lender approval. In California, products made or arranged pursuant to a California Financing Law License. License #: 603A169