Section 179 Business Tax Benefits

Improve Your Business with Section 179 Business Tax Benefits from Ressler Cadillac

Elevate your business to greater heights when you finance or lease a new Cadillac. You have objectives to meet and stakeholders to impress. You're ready to succeed in any endeavor when you build your fleet with stylish Cadillac vehicles. Don't let your bottom line take a hit. Take advantage of Section 179 tax deductions and build your fleet confidently.

Choose Ressler Cadillac as your preferred partner, ushering in a better dealership experience. Our knowledgeable sales team will work hard to help you get the most out of your time and money. Experience our personalized service, and you won't need anything else. Your satisfaction is our focus.

What Does Section 179 Entail?

Section 179 offers tax deductions for businesses making qualified equipment and technology purchases within the same tax year. You may earn up to a 100% tax deduction on qualified Cadillac purchases. It's a great tool to have in your corner come tax time.

2022 Deduction Limit = $1,080,000

This deduction is good on new and used equipment, as well as off-the-shelf software. To take the deduction for tax year 2022, the equipment must be financed or purchased and put into service between January 1, 2022 and the end of the day on December 31, 2022.

2022 Spending Cap on equipment purchases = $2,700,000

This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true "small business tax incentive" (because larger businesses that spend more than $3,780,000 on equipment won't get the deduction.)

Bonus Depreciation: 100% for 2022

Bonus Depreciation is generally taken after the Section 179 Spending Cap is reached. The Bonus Depreciation is available for both new and used equipment.

Vehicles and Section 179

Vehicles used in your businesses qualify - but certain passenger vehicles have a total deduction limitation of $11,160, while other vehicles that by their nature are not likely to be used more than a minimal amount for personal purposes qualify for full Section 179 deduction (full policy statement available at: IRS.gov ). As always, if you have questions, consult your tax professional for exact rules regarding Section 179 and vehicles.

What Business Vehicles Qualify for the full Section 179 Deduction?

Note that because many vehicles can serve business and personal function both, the rules for business vehicle deductions are always evolving, and can be complicated. It's easier to list the typical vehicles that will generally qualify for a full section 179 deduction, and then discuss the rules for other vehicles.

Many "work vehicles" that, by their nature, are not likely to be used for personal purposes will usually always qualify for full Section 179 deduction. This includes the following vehicles:

  • Vehicles that can seat nine-plus passengers behind the driver's seat (i.e.: Hotel / Airport shuttle vans, etc.).
  • 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.
  • Heavy construction equipment will qualify for the Section 179 deduction, as will forklifts and similar.
  • Typical "over-the-road" Tractor Trailers will qualify.

Limits for SUVs or Crossover Vehicles with GVW above 6,000lbs

Certain vehicles (with a gross vehicle weight rating above 6,000 lbs. but no more than 14,000 lbs.) qualify for deducting up to $25,000 if the vehicle is purchased and placed in service prior to December 31 and meets other conditions.

Other Considerations

Vehicles can be new or used ("new to you" is the key). The vehicle must be acquired in an "arms-length" transaction, financed with certain qualified leases and loans, and titled in the company name (not in the company owner's name).

The vehicle must also be used for business at least 50% of the time - and these depreciation limits are reduced by the corresponding % of personal use if the vehicle is used for business less than 100% of the time.

Remember, you can only claim Section 179 in the tax year that the vehicle is "placed in service" - meaning when the vehicle is ready and available - even if you're not using the vehicle. Further, a vehicle first used for personal purposes doesn't qualify in a later year if its purpose changes to business.

First Year Depreciation Limits for 2022

Earn up to $11,160 Bonus Depreciation for qualified first-year vehicle depreciation on the following models:

  • Cadillac CT5-V Blackwing
  • Cadillac CT5-V
  • Cadillac CT5
  • Cadillac CT4-V Blackwing
  • Cadillac CTV-V
  • Caddilac CT4

Up to $25,000 Deduction

Earn up to a $25,000 deduction on Cadillac models with a GVWR of more than 6,000 pounds but less than 14,000 pounds, such as the following models:

  • Cadillac Escalade-V
  • Cadillac Escalade
  • Cadillac XT5
  • Cadillac XT6

Contact Ressler Cadillac for More Information

Visit us online or call Ressler Cadillac to learn more about how your business can benefit via Section 179 tax deductions. Our experienced staff is ready to serve you. Contact us today.

How Can We Help?

  1. Ressler Cadillac

    8474 Huffine Lane
    Bozeman, MT 59718

    • Sales: (406) 404-8835
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