Does Your Vehicle Qualify for Section 179 Deduction Limit in 2023?


Does Your Vehicle Qualify for Section 179 Deduction Limit in 2023 of the IRS?

The Section 179 tax deduction allows businesses to deduct the full cost of certain qualifying equipment, including vehicles, in the year they are purchased. This can be a significant tax savings, especially for businesses that purchase expensive vehicles.

Who Qualifies for the Section 179 Tax Deduction?

To qualify for the Section 179 deduction, the business must meet the following requirements:

  • The business must be a sole proprietorship, partnership, S corporation, or C corporation.
  • The business must be operating in the United States.
  • The vehicle must be used more than 50% of the time for business purposes.
  • The vehicle must be purchased and placed in service during the tax year.

What Vehicles Qualify for the Section 179 Deduction?

Most vehicles used for business purposes qualify for the Section 179 deduction. Below is a list of qualify vehicles:

Make Model Approx GVWR (lbs)
Audi Q7 6,900
Audi SQ7 6,900
Audi Q8 6,900
Audi SQ8 6,900
BMW X5 xDrive45e 7,165
BMW X6 M50i 6,063
BMW X7 xDrive40i 7,143
BMW X7 M50i 7,143
BMW X7 M50d 7,143
Bentley Bentayga 7,275
Bentley Bentayga Hybrid 7,165
Bentley Bentayga Speed 7,275
Bentley Flying Spur 6,724
Bentley Flying Spur V8 6,724
Bentley Flying Spur W12 6,724
Bentley Mulsanne 6,173
Bentley Mulsanne Speed 6,173
Bentley Mulsanne Extended 6,617
Buick Enclave Avenir AWD 6,160
Buick Enclave Avenir FWD 6,055
Buick Enclave Essence AWD 6,160
Buick Enclave Essence FWD 6,055
Cadillac Escalade 7,100
Cadillac Escalade ESV 7,300
Cadillac Escalade Platinum 7,100
Cadillac Escalade ESV Platinum 7,300
Chevrolet Silverado 2500HD 10,000
Chevrolet Silverado 3500HD 14,000
Chevrolet Silverado 4500HD 16,500
Chevrolet Silverado 5500HD 19,500
Chevrolet Silverado 6500HD 23,500
Chevrolet Express Cargo Van 2500 8,600
Chevrolet Express Cargo Van 3500 9,900
Chevrolet Express Passenger Van 9,600
Chevrolet Suburban 7,800
Chevrolet Tahoe 7,400
Chevrolet Traverse 6,160
Chrysler Pacifica 6,055
Dodge Durango 6,500
Dodge Durango SRT 6,500
Dodge Durango Citadel 6,500
Dodge Durango R/T 6,500
Dodge Durango GT 6,500
Dodge Durango SXT 6,500
Dodge Grand Caravan 6,055
Ford Expedition 7,450
Ford Expedition MAX 7,700
Ford F-250 Super Duty 10,000
Ford F-350 Super Duty 14,000
Ford F-450 Super Duty 16,500
Ford F-550 Super Duty 19,500
Ford Transit Cargo Van T-250 HD 9,070
Ford Transit Cargo Van T-350 HD 10,360
Ford Transit Passenger Wagon 10,360
GMC Sierra 2500HD 10,000
GMC Sierra 3500HD 14,000
GMC Sierra 3500HD Denali 14,000
GMC Sierra 4500HD 16,500
GMC Sierra 5500HD 19,500
GMC Sierra 6500HD 22,900
GMC Yukon 7,300
GMC Yukon XL 7,800
Honda Odyssey 6,019
Infiniti QX80 7,385
Jeep Grand Cherokee 6,500
Jeep Grand Cherokee SRT 6,500
Jeep Grand Cherokee L 6,500
Jeep Wrangler Unlimited 6,500
Jeep Gladiator Rubicon 6,250
Land Rover Defender 110 7,165
Land Rover Defender 90 7,055
Land Rover Discovery 7,165
Land Rover Discovery Sport 6,724
Land Rover Range Rover 7,165
Land Rover Range Rover Sport 7,165
Land Rover Range Rover Velar 6,724
Land Rover Range Rover Evoque 6,724
Land Rover Range Rover Evoque R-Dynamic 6,724
Lexus LX 570 7,000
Lincoln Aviator 6,001
Lincoln Aviator 6,001
Lincoln Navigator 7,200
Mercedes-Benz GLS 580 4MATIC 6,768
Mercedes-Benz GLS 600 4MATIC 6,768
Mercedes-Benz G 550 4x4 Squared 7,057
Mercedes-Benz GLS 580 4MATIC 6,768
Mercedes-Benz GLS 600 4MATIC 6,768
Mercedes-Benz AMG G 63 4MATIC SUV 6,724
Nissan Armada 2WD/4WD 7,300
Nissan NV 1500 S V6 8,550
Nissan NVP 3500 S V6 9,100
Nissan Titan 2WD S 7,300
Porsche Cayenne Turbo Coupe 6,173
Porsche Cayenne Turbo S E-Hybrid Coupe 6,173
Porsche Cayenne Turbo S E-Hybrid 6,173
Porsche Panamera Turbo S E-Hybrid 6,244
Tesla Model X 6,000
Toyota Tundra 2WD/4WD 6,800
Toyota 4Runner 2WD/4WD LTD 6,300
Toyota Tundra 2WD/4WD 6,800

What Are the 2023 Section 179 Deduction Limits?

The Section 179 deduction limit for 2023 is $1,160,000. This means that businesses can deduct the full cost of up to $1,160,000 of qualifying equipment in the year it is purchased.

How to Calculate the Section 179 Deduction for Your Vehicle

To calculate the Section 179 deduction for your vehicle, you will need to know the following information:

  • The cost of the vehicle.
  • The percentage of time the vehicle is used for business purposes.

The deduction is calculated by multiplying the cost of the vehicle by the percentage of business use. For example, if the vehicle costs $50,000 and it is used for business purposes 75% of the time, the deduction would be $37,500. Other benefits can be seen by tracking your mileage.

Can I Finance a Business Vehicle and Still Claim the Section 179 Deduction?

You can finance a vehicle and still claim the Section 179 deduction. The deduction is based on the full cost of the vehicle, regardless of how it is financed.

How Does Bonus Depreciation Apply?

Did you know that Bonus Depreciation, a tax benefit offered under IRS Section 179, can help businesses write off a significant portion of the cost of certain assets all at once instead of spreading the deduction over several years? It's like a financial boost that encourages businesses to invest in important assets such as equipment and machinery by providing significant upfront tax savings. With this benefit, businesses can save money and reinvest in their growth and success.

What Are the Limitations of the IRS Section 179?

There are a few limitations to the Section 179 deduction. First, the deduction is limited to the total cost of qualifying equipment purchased during the tax year. Second, the deduction begins to phase out once a business's total purchases of qualifying equipment exceed $2,890,000.

What Records Do I Need to Keep for a Section 179 Vehicle Deduction?

To claim the Section 179 deduction, you will need to keep the following records:

Where Can I Get Help With the Section 179 Deduction?

If you have any questions about the Section 179 deduction, you can consult with a tax professional. They can help you determine if you qualify for the deduction and how to calculate it.


The Section 179 deduction can be a valuable tax savings tool for businesses that purchase qualifying equipment. If you are considering purchasing a vehicle for your business, be sure to factor in the Section 179 deduction when making your decision.

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