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Most people think the Section 179 deduction is some mysterious or complicated tax code. It really isn’t, as you will see below.
Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. government to encourage businesses to buy equipment and invest in themselves.
Several years ago, Section 179 was often referred to as the “SUV Tax Loophole” or the “Hummer Deduction” because many businesses have used this tax code to write-off the purchase of qualifying vehicles at the time (like SUV’s and Hummers). But, that particular benefit of Section 179 has been severely reduced in recent years, see ‘Vehicles & Section 179‘ for current limits on business vehicles.
Answers to the Three Most Common Section 179 Questions
How Much Can I Save on My Taxes in 2018?
It depends on the amount of qualifying equipment and software that you purchase and put into use. See the handy Section 179 Calculator that’s fully updated for 2018, and includes any/all increases from any future legislation.
What Sort of Equipment Qualifies in 2018?
Most tangible business equipment qualifies. Click here for qualifying property.
When Do I Have to Do This By?
Section 179 for 2018 expires midnight, 12/31/2018. If you wish to deduct the full price of your equipment from your 2018 taxes and take advantage of the new higher deduction limits, it must be purchased and put into service by then.
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2017 / 2018 LIST OF VEHICLES WITH EXCEEDING 6,000 POUNDS AND THEREFORE QUALIFY FOR SPECIAL TAX STATUS. |
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| Make | Model | GVWR (Lbs) | |
| Unloaded | Loaded | ||
| Audi | Audi Q7 3.0T Premium | 4,938 | 6,479 |
| BMW | X5 | 4,790 | 6,063 |
| Buick | Enclave | 4,724 | 6,411 |
| Cadillac | Escalade | 5,521 | 7,100 |
| Escalade ESV | 5,731 | 7,300 | |
| Chevrolet | Express 2500 | 6,108 | 8,600 |
| Express 3500 | 6,129 | 9,600 | |
| Silverado 1500 | 5,035 | 6,900 | |
| Silverado 2500HD | 6,334 | 9,500 | |
| Silverado 3500HD | 7,229 | 13,025 | |
| Suburban | 5,586 | 7,300 | |
| Tahoe | 5,356 | 7,100 | |
| Traverse | 4,713 | 6,411 | |
| Dodge | Grand Caravan | 4,321 | 6,050 |
| Ford | Expedition EL | 5,841 | 7,500 |
| Expedition | 5,562 | 7,260 | |
| Explorer | 4,629 | 6,160 | |
| F-150 | 4,049 | 6,010 | |
| F-250 | 5,683 | 9,950 | |
| F-350 | 5,909 | 10,000 | |
| F-450 | 8,590 | 14,000 | |
| GMC | Acadia | TBD | 6,001 |
| Savana 2500 | 6,108 | 8,600 | |
| Savana 3500 | 6,129 | 9,600 | |
| Sierra 1500 | 5,035 | 6,900 | |
| Sierra 2500HD | 6,092 | 9,500 | |
| Sierra 3500HD | 6,617 | 13,400 | |
| Yukon | 5,379 | 7,100 | |
| Yukon XL | 5,610 | 7,300 | |
| Honda | Odyssey | 4,396 | 6,019 |
| Pilot | 4,220 | 6,096 | |
| Infiniti | QX80 | 5,633 | 7,300 |
| Jeep | Grand Cherokee | 4,545 | 6,500 |
| Land Rover | Range Rover | TBD | 7,033 |
| Lexus | GX460 | 5,130 | 6,600 |
| LX570 | 6,000 | 7,385 | |
| Lincoln | Navigator | 5,830 | 7,500 |
| Navigator L | 6,061 | 7,700 | |
| Mercedes | G-Class | 5,724 | 7,058 |
| GL-Class | 5,335 | 7,165 | |
| Metris Class | 4,222 | 6,724 | |
| Sprinter | 6,382 | 11,030 | |
| Nissan | Armada | 5,576 | 7,300 |
| NV Cargo NV1500 | 5,791 | 8,550 | |
| NV Cargo NV2500 HD | 5,810 | 9,100 | |
| NV Cargo NV3500 HD | 5,878 | 9,900 | |
| NV Passenger NV3500 HD | 6,697 | 9,520 | |
| Titan | 5,935 | 7,300 | |
| Porsche | Cayenne | 4,488 | 6,195 |
| 6,100 | |||
| Land Cruiser | 5,815 | 7,385 | |
| Sequoia | 5,730 | 7,100 | |
