Section 179 Tax Deduction Information

New Mercedes-Benz Sprinter

 Section 179 Tax Deduction Information

What is Section 179 Deduction for Vehicles?

The Section 179 of the IRS tax code allows businesses to deduct the full purchase costs of any qualifying vehicles that are bought or financed during the tax year. In other words, if you buy or lease a car for your business, you may qualify to subtract the expense from your income.

Section 179 Deduction at Mercedes-Benz of North Olmsted

When you buy or lease a qualifying Mercedes-Benz vehicle at our dealership in North Olmsted, you can receive a tax-deduction up to $25,000. Section 179 of the tax code is a specific accounting practice that gives small- and medium-sized companies a tax break on certain auto purchases and leases, including eligible new and used Mercedes-Benz vehicles.

The Section 179 Benefit

Usually, any tax method made toward the lease and purchase of capital equipment aims to depreciate the cost over several years, since the company wins back part of the cost through annual tax deductions. Section 179 is a special rule for small-to-medium-sized businesses to subtract the cost in the year of purchase or lease-start. This prompt write-off under Section 179, as much as $25,000, may surpass the amount of your payments for the first year, which results in the purchase or lease of an eligible Mercedes-Benz vehicle much more reasonable and affordable.

What Mercedes-Benz Vehicles Are Eligible for Section 179 Deduction?

Your business’ bottom line benefits from what the considerable tax break that Section 179 renders when leasing or purchasing an qualified vehicle. For a vehicle to qualify for Section 179 tax treatment, it must be a crossover or SUV that isn’t ordinarily used for daily personal transportation. Eligibility also requires the vehicle to have a gross vehicle weight rating (GVWR) between 6,000 and 14,000 pounds. These are the Mercedes-Benz vehicles that qualify for Section 179 tax treatment:

  • Sprinter: The ultimate business vehicle, Sprinter is available in Minibus, Cab Chassis, and Van configurations. The powerful Sprinter is ready for immediate upfitting to satisfy your hauling and towing requirements, whatever your industry.

If you are looking to lease or buy a work vehicle eligible for a Section 179 tax write-off, stop by our local Mercedes-Benz dealership in North Olmsted. We have plenty of vehicles in stock for you to choose from. We’d love to discuss all the benefits of leasing or buying an eligible Mercedes-Benz vehicle with you, so that your business can cash in on a Section-179 tax deduction.