Tax Deductions

Business owners looking to keep their fleets current are always looking for tax savings. Mercedes-Benz of San Antonio is happy to tell you that if you’re looking to save on taxes on your next new vehicle purchase, you should consider the Section 179 deduction. This applies to a Mercedes-Benz over 6,000 pounds that you use for business purposes, but there’s more context we think you should know about.

San Antonio fleet managers should come to San Antonio to have a chat with our experts regarding your options.

What Is the Section 179 Deduction?

The United States Internal Revenue Service allows businesses in Alamo Heights and the rest of the United States to deduct the full purchase costs of a qualifying vehicle under Section 179. This means that if you’ve bought or leased a vehicle that fits the criteria, you can subtract the expense from your income taxes. However, there are a few steps to follow to take advantage of these tax savings that you can read about below.

How Does It Work?

When you buy a Mercedes-Benz over 6,000 pounds, you can maximize your tax savings with the Section 179 deduction. You can deduct up to $30,500 from a qualifying vehicle from your business’s gross income in the same tax year. You might have the option to deduct the full purchase price, but your situation is best discussed with a tax professional.

Does My Business Qualify?

To get the Section 179 deduction, San Antonio business owners will have to fulfill these conditions:

• Your business has purchased or financed new or used business equipment (your vehicle) during the current tax year.
• The vehicle has a gross vehicle weight rating (GVWR) between 6,000 and 14,000 pounds.
• The vehicles are used for business purposes, not personal transportation.
• You put the equipment into service between January 1 and December 31 of the relevant tax year.
• You spent less than $3,500,000 total on the equipment.

Here are a few pieces of advice on the dollar amounts in question:

• You can write off a maximum of $1,000,000.
• The total amount of equipment purchased can’t exceed $2,500,000. You have a dollar-for-dollar phase-out after that; as a result, past the $3,500,000 mark, the deduction goes away entirely.

Mercedes-Benz of San Antonio Is Your Finance Team

Vehicles such as the G-Class and GLS SUVs might qualify for the Section 179 deduction because they can be outfitted as a Mercedes-Benz over 6,000 pounds. If you still have questions, Mercedes-Benz of San Antonio is a short drive from Shavano Park and ready to serve you. Contact us today with all your questions, and we’d be more than happy to answer them.