Section 179 Tax Savings:
A Guide for Mercedes-Benz Owners

What is Section 179 Tax Deduction?

The Section 179 tax deduction lets you deduct all or part of the cost of your vehicle in the first year you use it for business, so long as it qualifies for the Section 179 deduction.

Generally speaking, the Section 179 tax deduction applies to passenger vehicles, heavy SUVs, trucks, and vans used at least 50% of the time for business-related purposes.

Section 179 Vehicle Types

The Internal Revenue Service (IRS) breaks down the list of vehicles that qualify for Section 179 deduction into three primary groups: Light, Heavy, and Other. The allowable deduction differs for each group.

Light Section 179 Vehicles

  • Any vehicle with a manufacturer’s gross vehicle weight rating (GVWR) under 6,000 pounds (3 tons).
  • This includes many passenger cars, crossover SUVs, and small utility trucks.
  • For 2023, these autos have a Section 179 tax deduction limit of $12,200 in the first year they are used. If the extra $8,000 of Bonus Depreciation is also factored in, you can deduct up to a combined maximum of $20,200 for 2023.

Heavy Section 179 Vehicles

  • Any vehicle with at least 6,000 pounds GVWR but no more than 14,000 pounds (3-7 tons).
  • This includes many full-size SUVs, commercial vans, and pickup trucks.
  • For 2023, a vehicle qualifying in the “heavy” category has a Section 179 tax deduction limit of $28,900. For 2023, the allowable bonus depreciation percentage is 80%.

Other Section 179 Vehicles

Any vehicle with a GVWR over 14,000 pounds (7 tons) OR a vehicle modified for nonpersonal use. Specifically:

  • Shuttle Vehicles having more than nine passengers behind the driver’s seat
  • Delivery Vans having a cargo area of at least six feet in interior length not easily accessible from the passenger area
  • Vehicles with an integral enclosure fully enclosing the driver compartment and load-carrying device, no seating behind the driver, and no portion of the body extending more than 30 inches beyond the windshield.
  • For 2023, any vehicle meeting the above weight or modification guidelines is not subject to a Section 179 tax deduction limitation. You may deduct up to 100% of the cost of any vehicle falling into this category. 

Many Mercedes-Benz Vehicles Qualify for Tax Credits

Purchasing an Mercedes-Benz of Kansas City model for a business may qualify owners for a tax break, according to IRS Section 179.

In order to qualify, the vehicles must meet a specific weight requirement and be used for business purposes. Drivers who wish to take advantage of this tax break should consult with their tax professional to find out the full benefit the law holds for them.

The most important fact to remember as you consider this is that you must purchase your qualifying vehicle by December 31, 2023. Read on to find out which Mercedes-Benz of Kansas City vehicles qualify for tax credits.

We invite you to come in and see the entire selection of qualifying vehicles, and take advantage of twice the offers: our year-end offers and the Federal Government’s tax opportunities if you qualify.

To gather details on the qualifying models at Mercedes-Benz of Kansas City, drivers are encouraged to contact the dealership

Restrictions may apply. Please contact the dealer and a tax professional for full details. The information provided on this website does not, and is not intended to, constitute legal, tax or accounting advice or recommendations. All information prepared on this site is for informational purposes only, and should not be relied on for legal, tax or accounting advice. You should consult your own legal, tax or accounting advisors before engaging in any transaction.

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