What Is Section 179 & What Does It Mean For You?

New RAM Truck Driving in Snow

Tax laws can be daunting to learn, but business owners need to comprehend them to know the various ways to save a business money and get unique tax benefits. Section 179 of the United States tax law states that a business can deduct up to the total purchase price of a new or used vehicle that has a Gross Vehicle Weight Rating (GVWR) of 6,000 lbs or more and is used for business purposes more than 50% of the time. 

Section 179 Deductions & Limitations

With the 2023 tax year, businesses will be able to write off as much as 1,160,000 dollars worth of vehicles, equipment, and software that is used by and for the company. Section 179 is essential for small and medium-sized businesses, but the tax law has a couple of main limitations. 

  1. The amount of money deducted can not be more than the income of the business owner’s trades or the total businesses they own.
  2. If the qualified assets the business owner puts into effect during the taxable year exceeds $2.89 million, including inflation indexing, the deduction allowance phases out.

What Vehicles Does Section 179 Apply To?

It must be remembered that Section 179 allows for business owners to deduct the purchase price of both new and used vehicles and equipment, whether it is financed, leased, or purchased in full. 

The New RAM Truck Family

What vehicles qualify for a 100% tax deduction at Chrysler Dodge Jeep Ram of Monroe?

  • Ram 1500 (some 1500 models with a GVWR of less than 6,000 lbs are only subject to a value loss deduction and not a purchase price deduction)
  • Ram 1500 Classic 
  • Ram 2500 & 3500 
  • Ram 3500, 4500 & 5500 Chassis Cab 
  • Ram ProMaster

The New Jeep Gladiator and Wrangler

Certain Jeep vehicles qualify for up to 80% of the total purchase price deduction:

  • Gladiator
    • Rubicon
    • All 2023 models with available max towing package
    • Mojave
    • 2023 models with 3.0-liter EcoDiesel V6
  • Grand Cherokee (2 and 3-row)
    • All 2023 and 2024 trim levels, including 4xe
  • Wrangler
    • ‘23 and ‘24 Rubicon 392
    • 4xe models
    • 2023 3.6-liter Rubicon 4-door with Xtreme Recon Package

The New Jeep Grand Cherokee Family

This article should not replace a discussion with your sales representative and a licensed tax professional to have all of the relevant facts and information presented to you to understand all about Section 179 fully. Tax law can be challenging to comprehend, and this article is for simple guidance only and not to be used in place of an expert’s advice. 

At Rairdon’s Chrysler, Dodge, Jeep, and Ram of Monroe, we have hundreds of new and used cars for you to choose from. We take pride in offering great customer service and excellent values on all vehicles. Our talented sales team and finance department will be able to take care of you and ensure you get the right deal. And once you get your next car, our fantastic service department will work hard to ensure your car stays in the best shape.