Section 179 Tax Savings with Mercedes-Benz of St. Louis
What Is Section 179?
If you’re a business owner in the Clayton area, you might have heard of section 179. Section 179 is a business tax code that allows business owners to deduct taxes on certain kinds of business equipment, which includes commercial vehicles like Sprinter Vans and Metris Vans. These tax deductions can help business owners combat asset depreciation, and business owners may be able to deduct up to $30,500* for qualifying vehicles. this can add up to about $6,405** in total savings.
In some cases, you might be able to deduct the full purchase price of your business vehicle, but you should consult with your tax professional to see exactly what you qualify for and for how much. Learn more about Section 179 with Mercedes-Benz of St. Louis to see how it can benefit your business.
What Kind of Business Vehicles Can Qualify?
If you have a Sprinter Van or a Metris Van that you drive around Ladue for business purposes, you might qualify for Section 179 benefits. To qualify, all you have to do is meet any of the following requirements:
- Are a business that purchased or financed qualifying new or used business equipment, including certain business-use vehicles, during the 2024 tax year
- Put the equipment into service between January 1, 2024, and December 31, 2024
- Used this equipment for business purposes more than 50% of the time
- Spent less than $4,270,000 on this equipment
How Much Can You Deduct?
As we mentioned earlier, you may be able to deduct up to the full purchase price of a commercial vehicle, but it depends on certain factors. Here are the limits of how much you can deduct with Section 179.
- You can’t write off more than $1,220,000.
- The total amount of the equipment purchased can’t exceed $3,050,000. Once $4,270,000 is spent, the deduction goes away entirely.
Section 179 Highlights
How else can Section 179 improve your business in the Frontenac area? Here are some other helpful things to know about Section 179:
- Ability to deduct up to the full purchase price of certain new or used vehicles, equipment, or software purchased and placed into service during the tax year
- Equipment or software must be used for more than 50% of business purposes
Help Your Business Improve With Mercedes-Benz of St. Louis
If you still have questions about Section 179 and how it can improve your business, reach out to us online or visit us in St. Louis. We look forward to answering any questions you have and helping your business thrive!
Disclaimers:
*$30,500 tax deduction for qualifying vehicles based on current Section 179 of U.S. tax code and maximum deduction permitted for such vehicles under Section 179. Vehicle must be purchased for business use. Please consult your tax advisor. This information does not constitute, nor is it intended to be, legal, tax, financial planning or investment advice and should not be relied upon as such.
**$6,405 tax savings based on 21% federal corporate tax rate and eligibility to claim full $30,500 IRS Section 179 tax deduction for qualified vehicles. Your tax rate and eligibility may vary. Please consult a tax professional for more information on your federal tax rate and potential tax savings available to you for qualifying purchases. This information does not constitute, nor is it intended to be, legal, tax, financial planning or investment advice and should not be relied upon as much.
Offer valid through December 31, 2024. For more details, visit www.mbvans.com/en/section-179-tax-deductions and www.irs.gov