Section 179 Tax Deduction at Bob Moore Cadillac Norman

Invest in Your Business 

Business owners looking to boost their bottom line should understand how to leverage the Section 179 Tax Deduction. The tax code allows businesses to deduct the cost of vehicles or equipment that qualify. This can be a game changer for companies interested in expanding their fleet or growing operations. We invite all business owners in the Norman, Moore, and OKC areas to Bob Moore Cadillac to explore our selection of qualified vehicles. We can help you expand your fleet and maximize your savings in the upcoming tax year.

What is the Section 179 Tax Deduction?

Section 179 of the IRS Tax Code was a provision created to incentivize businesses to invest back into their operations with less risk attached. It allows businesses to deduct a portion or, in some cases, the total purchase price of vehicles, equipment, and machinery purchased or financed during the tax year. 

How Does My Business Qualify for Tax Code 179?

If your business purchased, financed, or leased vehicles within the tax year, your business may qualify for a deduction under Section 179 of the IRS Tax Code. Here are some factors that must be met to qualify for a deduction:

• The vehicle or equipment purchased must enter your business as a conscripted vehicle within the same year the deduction is filed.
• The vehicle or equipment purchased must be used for more than 50% of the time for business purposes.
• The total amount written off during a tax year should not exceed the amount spent on vehicles or equipment.

Changes to Tax Code 179 in 2023

Business owners were excited to hear the Section 179 Tax Code provisions in 2023 for both deduction limits and the total spending cap. 

• The Section 179 deduction limit for 2023 was raised to $1,160,000 (previously $1,080,000 ), and the total equipment purchase limit was raised to $2,890,000 (previously $2,700,000). 
• The 2023 Spending Cap on equipment purchases was also raised to $4,050,000 (previously $3,780,000).

Vehicle Deduction Limits 

There are some crucial distinctions local business owners should understand before making any final decisions. The vehicle or fleet of vehicles may qualify for a higher deduction depending on their body style and overall usage.

Work-centric vehicles, mainly used for business, such as shuttle vans, cargo vans with a fully-enclosed driver’s compartment/cargo area with no seating behind the driver’s seat, “Singular use” business vehicles like ambulances or hearses, and over-the-road Tractor Trailers qualify for the full deduction if used for business 100% of the time.

Trucks and SUVs have a deduction limit. Vehicles considered sport utility vehicles (SUV) that have been put into service before Dec. 31st have a maximum deduction of $28,900. This includes Pickup trucks with a full-size (8’) cargo bed and Heavy SUVs with a GVWR (Gross Vehicle Weight Rating) between 6,000 lbs and 14,000 lbs. 

Cadillacs That Qualify for Tax Code Section 179

Cadillac produces a handful of vehicles that qualify for a partial passenger vehicle deduction, including the Cadillac CT4, Cadillac CT5, and the Cadillac XT4. Models like the Cadillac XT5, XT6, Escalade, and Escalade ESV may qualify for a higher deduction based on their GVWR and overall usage.

Find the Perfect Solution at Bob Moore Cadillac 

Are you planning to upgrade your business’s fleet or transportation? Visit Bob Moore Cadillac of Norman to explore our selection of Cadillac vehicles that qualify for the tax deduction. Our expert Cadillac team can help you find the perfect fit for your business goals. Give us a call, or stop by our Cadillac dealership near OKC to learn more about the Section 179 Tax Deduction.