Section 179 Tax Benefits
Texas business owners know the Section 179 tax incentive is one of the best ways to buy commercial-use assets like trucks and vans. Our Jeep and Ram dealership near Tyler has helped many fleet operators upgrade to the latest and greatest trucks from their favorite commercial truck brand -- Ram. With new Ram HD trucks and ProMaster® vans for sale now and the end of the tax year fast approaching, there's never been a better time to claim Section 179 tax savings on your business investments.
Understanding Section 179 Tax Deductions
Section 179 is simple in its premise and far-reaching in its impact. In short, it lets you deduct the entire purchase price of an eligible asset bought for commercial purposes as an accelerated depreciation expense. This means you can depreciate the entire vehicle in the year of purchase on your return rather than following the conventional tax depreciation methodology that would be otherwise required by the IRS.
The power of this upfront deduction is that it can let you dramatically reduce your tax burden. If you own a business and need an asset such as a car or truck, Section 179 is for you. Just be sure to buy and put your new Ram into service by December 31, 2024 -- otherwise, you won't be able to claim your tax savings until the next tax year.1
Section 179 Tax Deduction Limits & Caps
Key limitations, spending caps and other relevant Section 179 details include:
- Deduction Limit: Businesses can write off up to $1,220,000. 1
- Spending Cap: The spending limit on eligible equipment is $3,050,000. 1
- 2024 Bonus Depreciation: 60%1
- Allows for a significant immediate deduction on qualifying assets.
- Typically used after reaching the Spending Cap.
- Covers both new and used vehicle purchases.
- Eligibility: Must be acquired and operational by December 31, 2024.
Which Vehicles Are Eligible for Section 179?
Both new vehicles -- such as our new Ram truck inventory -- as well as used cars may be eligible for savings. Thanks to partial deductions also being available for most passenger cars and trucks used at least 50% of the time for business, you can upgrade to models like the Grand Cherokee or Chrysler Pacifica and generally still qualify for Section 179 savings. Of course, your tax accountant or CPA will have more information.
Visit Our Commercial Ram Dealer Near Tyler
With an expert auto finance team specializing in commercial Ram and Jeep sales, we can help you upgrade to a new truck in a tax-advantaged way that puts your business first. Stop by our showroom or contact Randall Dodge Chrysler Jeep Ram to make your next fleet purchase.
1 Information accurate at date of publishing. Refer to https://www.section179.org for most up-to-date specifications.