Section 179 Vehicles in Stockton | Mercedes-Benz of Stockton
As we approach the end of the year, business owners across the country are purchasing new vehicles to maximize their tax savings. Want to join the fun? Shop Section 179 vehicles for sale in Stockton, CA at our Mercedes-Benz dealership! Section 179 of the tax code allows your business to deduct a large chunk of the value of your car on your return, allowing you to add new vehicles to your fleet without as much overhead. It’s a great tool to take your business to the next level, whether you need a cargo van like the Mercedes-Benz Sprinter or a luxury SUV for your real estate business. Our Mercedes-Benz Section 179 vehicles extend well beyond favorites like the Sprinter, even including top-shelf SUVs like the G-Class. In our coverage of Section 179 below, we’ll preview almost everything you need to know about Section 179 and which Mercedes-Benz vehicles qualify for tax savings. If you’d like to learn more about how you can save, visit Mercedes-Benz of Stockton.
What is Section 179?
Section 179 of the IRS tax code allows businesses to write off assets you acquire during the year you acquire them. In normal scenarios, your business can claim depreciation write-offs over the life of your equipment, but Section 179 is special, allowing you to take the entire depreciation write-off at once. This applies to a range of different equipment, including vehicles. When you purchase a qualifying vehicle, you can deduct up to $32,000 per vehicle for the year you buy it, which is why buying commercial vehicles at the end of the year is so popular. There are some rules to be aware of, though. You can deduct up to $2.5 million, with a spending threshold up to $4 million. Section 179 only applies to vehicles between 6,000 and 14,000 lbs GVWR. For a more detailed explanation of the mechanics of Section 179, you’ll want to consult a tax professional.
Mercedes-Benz Vehicles Section 179
At Mercedes-Benz of Stockton, you’ll find all sorts of new vehicles that meet the weight requirements to be eligible for Section 179. Mercedes-Benz vehicles that qualify for Section 179 include:
- Mercedes-Benz Sprinter Cargo Vans
- Mercedes-Benz Sprinter Passenger Vans
- Mercedes-Benz GLE SUVs
- Mercedes-Benz GLS SUVs
- Mercedes-Benz G-Class
There are some exceptions to the rules above, as certain engines and trim levels can cause the models’ GVWR to cross over or under the weight ratings set by the IRS. If you’d like to learn more about the vehicles that qualify for Section 179, visit Mercedes-Benz of Stockton.
How to Claim the Section 179 Tax Break
While taxes are never easy, it’s fairly straightforward to claim your Section 179 tax deduction. To qualify, you need to put the vehicle in service the same year it’s purchased. In this case, “in service” means you’ve used the vehicle for business purposes more than 50% of the time. It makes sense to purchase a Section 179 Mercedes-Benz at the end of the year, giving you a brief window to put the Sprinter or SUV into service before you benefit from the tax break in Q1 of the following year. After you purchase, you’ll submit Form 4562 with your tax return, where you’ll need to provide the cost of the vehicle, your business income, and other relevant tax info. Our team is ready to help you stock your business with the finest vans and SUVs in the industry, but you’ll want to consult your accountant for any further tax details!
Shop Section 179 Vehicles in Stockton, CA
Whether you need a Mercedes-Benz SUV for transporting clients or a new Sprinter van for cargo, Mercedes-Benz of Stockton is ready to partner with your business. Our team knows everything about our vehicles, but we’re not tax experts. If you plan to purchase a vehicle and use the Section 179 tax deduction, please consult a tax professional to ensure you understand how this purchase will impact your business.