Take Advantage of Tax Code 179
When you run a business, your bottom line is important, and every business must pay taxes in some form. Tax breaks can help you save money and reduce the amount you will pay in taxes. Tax Code 179 is one way you can get a tax break when you buy a Cadillac for your business. If your business is located near Oklahoma City, Norman, or Tulsa, check out the inventory of Cadillac vehicles at Bob Moore Cadillac of Norman to increase your business fleet.
Tax Code 179
Section 179 of the tax code allows businesses to deduct a portion of the purchase price from qualified vehicles, and in some cases, you can deduct the whole amount of purchase from the business owner’s gross income. Code 179 is a tax incentive on the part of the U.S. Government to encourage business owners to purchase vehicles and invest in their business’s operations.
Does My Business Qualify for Code 179?
Does your business lease, finance, or buy used vehicles within the tax year? If it does, your business qualifies for a deduction under Section 179 of the IRS Tax Code. If you want to take advantage of this deduction, the purchased vehicle must enter your business as a conscripted vehicle within the same year the deduction is filed. The deduction amount becomes a buffer for finances directed toward the operation of your establishment as the claimant. Regardless of the amount, the money will help build your business and expand the company’s operation.
Which Cadillac Vehicles Qualify for Tax Code 179?
Many vehicles can serve as personal vehicles and business vehicles. The rules for what make a car qualify as a business vehicle are always changing, and it can be challenging to understand.
First, many “work vehicles” are not generally used for personal purposes. Examples of this are as follows:
- Vehicles that can seat at least nine passengers behind the driver’s seat, like Hotel and Airport Shuttle vans.
- Vehicles with:
- The driver’s compartment or cargo area is completely enclosed.
- No seats were installed behind the driver’s seat.
- No body section that extends over 30 inches in front of the leading edge of the vehicle, like a standard cargo van.
- Heavy construction equipment, forklifts, and similar vehicles.
- Over-the-road vehicles like tractor-trailers.
Limits on Passenger Vehicles Used for Business
When it comes to passenger vehicles, trucks, and vans used more than half the time in qualified business use, the total deduction is $18,200.00 per vehicle unless the vehicle meets the following guidelines:
- Hearses or ambulances used specifically in your business.
- Transport vans, taxis, and other vehicles used as transport for people or for-hire property.
- Vehicles that are specifically modified for business and not for personal use.
- Heavy “non-SUV” vehicles and trucks that have a cargo area of at least six feet in interior length that is not easily accessible from the passenger area.
Cadillacs That Qualify for Code 179
The following Cadillac models meet the criteria for the deduction for a passenger vehicle: CT4, CT5, and XT4. These Cadillac vehicles qualify for up to the full purchase price as SUVs or trucks with GVWR of more than 6,000 lbs. but less than 14,000 lbs.: XT5, XT6, Escalade, and Escalade ESV.
To find out more about Cadillac vehicles that meet Tax Code 179, come by Bob Moore Cadillac of Norman to check out our inventory and talk to our sales and finance teams to learn more.