Section 179 Tax Benefits in Spokane, WA

Take advantage of these tax deductions for your small business when you purchase a New Honda vehicle by December 31st!

Learn About Section 179 Tax Deductions

Growing your business in this economy can be challenging, but using tax strategies can help you obtain your goals. If you are looking to invest in your infrastructure you may be eligible for this deduction. This section allows businesses like yourself to take write offs on equipment purchases like vehicles and trucks. 

As of midnight, January 1, 2015 the limit of this section deduction has been reduced to $25,000 and, so far, no bonus depreciation is available for the 2015 year. However, trends from previous years could come into play this year as well, expanded limits could be restored by congress in the near future. Check in periodically as we will post details as they become available. If you are looking to take advantage of this extension time is running out so consult your local Honda dealer to get the returns your business deserves.



 
 

Frequently Asked Questions

Q. What is the Section 179 deduction?
A. This section of the IRS tax code was designed as an incentive for business owners to invest in their businesses and the economy by purchasing equipment. It allows taxpayers to elect to deduct the full purchase cost of certain types of property (up to $25,000) from their federal taxes for the year the property was purchased.

Q. Which property qualifies under Section 179?

A. Most business equipment qualifies for this tax deduction. This includes tangible goods like vehicles, machinery, computers, software, and office furniture. The official website has a full list of equipment that qualifies for this Tax Deduction. To qualify more than 50% of the property's use must be in the service of a trade or business. To see a list of qualifying equipment click here.

Q. How much can you deduct?
A. The amount you can deduct is generally equal to the purchase price of qualifying property up to $25,000. There are some limitations, including a $25,000 limit on the amount a small business owner can elect to deduct for the purchase of certain sports utility vehicles. There is also a limitation for businesses that purchase more than $200,000 in qualified equipment. The IRS website has a more detailed explanation of deduction limits.

Q. Will the 2015 Section 179 dollar limitations change?

A. Lawmakers are considering an increase to this sections dollar limitation, potentially retroactive to January 1, 2015. Keep an eye on our channels for possible updates.

Q. What are the Limits on Typical Passenger Vehicles?
A. For passenger vehicles, trucks and vans (not meeting the guidelines below), that are used more than 50% in a qualified business use, the total deduction for depreciation including both this Section expense deduction as well as Bonus Depreciation is limited to $11,060 for cars and $11,160 for trucks and vans.     
        
Exceptions include the following vehicles:
  • Ambulance or hearse used specifically in your business
  • Taxis, transport vans and other vehicles used to specifically transport people or property for hire 
  • Qualified non-personal use vehicles specifically modified for business (i.e. van without seating behind driver, permanent shelving installed and exterior painted with company's name 
Limits for SUVs or Crossover Vehicles with GVWR above 6,000 lbs
Certain vehicles (with a gross vehicle weight rating above 6,000 lbs but no more than 14,000 lbs) qualify for expensing up to $25,000 if the vehicle is financed and placed in service prior to December 31 and meet other conditions.       

Q. What Vehicles Qualify for the full section Deduction?
A. Many vehicles that, by their nature, are not likely to be used for personal purposes qualify for the full Section deduction including the following vehicles: 

    1. Heavy "non-SUV" vehicles with a cargo area at least six feet in interior length (this area must not be easily accessible from the passenger area). To give         an example many pickups with full-sized cargo beds will qualify (although some "extended cab" pickups may have beds that are too small to qualify).
    2. Vehicles that can seat nine-plus passengers behind the driver's seat (i.e. Hotel/Airport shuttle vans, etc.).
    3. Vehicles with: (1) a fully-enclosed driver's compartment/cargo area, (2) no seating at all behind the driver's seat and (3) no body section         protruding more than 30 inches ahead of the leading edge of the windshield. In other words, a classic cargo van.


*To review the certain stipulations for vehicles to qualify, click here.
2016 Honda Pilot

  
May be able to deduct up to 100% of the purchase cost in the first year. The New 2016 Honda Pilot is our ultimate SUV. If you need to haul bigger loads, the Pilot has impressive cargo capacity. Impressive power, seating and loading accessories including side steps, entertainment options, navigation, cross bars and optional third-row seating.

            



PRE-OWNED QUALIFIERS

 
May be able to deduct up to 100% of the purchase cost in the first year. The customers who own businesses trust the capable pre-owned vehicles sold by Larry H. Miller Downtown Honda Spokane. Available with heavy-duty towing and hauling applications. Not all vehicles will qualify for full deduction. See details above.

                                             



*The information provided here is intended as a general overview of the Section 179 Deduction. You should always consult with a tax professional on business tax deductions. Ends 12/31/2015.

Any Questions About This Tax Deduction?

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