Invest in your business today with Section 179 tax deductions on qualifying vehicles like the Lexus GX, Lexus TX, and Lexus LX. Any vehicle purchased for a business and placed into use this year can qualify for a money-saving tax deduction on their 2024 return. Find out how much you can save today with the Section 179 benefit for Bakersfield, CA, businesses.
With Section 179 deductions, businesses can reduce their tax burden by claiming up to 100 percent of the purchase price for qualifying vehicles. In order to make Section 179 a small to medium business benefit, there are spending limits on equipment and caps for certain types of vehicles. Luxury vehicles like the Lexus GX, Lexus TX, and Lexus LX qualify for at least a partial deduction. If you purchase a vehicle at Motor City Lexus of Bakersfield and place it into use between January 1, 2024, and December 31, 2024, you can claim the deduction on the 2024 tax return. You can speak with our sales team to learn more about eligible vehicles and how to save on fleet and commercial vehicles at our dealership.
There are several criteria for taking Section 179 deductions. However, all business-use vehicles qualify for at least a partial deduction, whether a business purchases them outright or finances the vehicle. To claim a new or used vehicle using Section 179 deductions, you must meet the following criteria:
Please consult your tax preparation specialist about Section 179 deductions and how they apply to your business.
Any vehicle you purchase and use for business purposes at least 50 percent of the time can qualify for at least a partial deduction. The amount of the deduction is based on the vehicle type, weight, or modifications. Most of our luxury SUVs fall under the light or heavy vehicles, which have caps on the total deduction allowed. Here are the limits for 2024:
Passenger cars, crossover SUVs, and small trucks fall under the "light" category. The deduction limit in 2024 is $12,400, with an additional $8,000 in bonus depreciation.
Full-size SUVs, commercial vans, and pickup trucks generally fall into the "heavy"" category. The deduction limit in 2024 is $30,500, with an additional 60 percent bonus depreciation.
The "other" category includes vehicles that automatically qualify for a deduction that is 100 percent of the purchase price. Vehicles weighing 14,000 pounds or more automatically qualify regardless of the type of vehicle or body style. Additionally, vehicles weighing less than 14,000 pounds but modified for specific work purposes that do not allow them to be used as personal vehicles also qualify.
Some vehicles in this category are passenger vans with at least nine seats behind the front row, pickup trucks with beds that are at least eight feet long, or delivery vans with a cargo area that is at least six feet in length and not easily accessible from the front passenger area.
There are also Section 179 spending limits for businesses to ensure it is a true small to medium business benefit. Businesses can deduct all the vehicles they purchase during the current tax year. However, these are spending caps and deduction limits for 2024:
Our team at Motor City Lexus of Bakersfield understands the unique needs of businesses in the Bakersfield area. Contact us today to receive expert matching services and other excellent services to meet your business needs.
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