Take Advantage of Section 179 Tax Deductions for Commercial Vehicles

Mercedes-Benz of Medford makes it easy for customers to cash in on tax deductions. In particular, the Section 179 tax deduction for commercial vehicles is especially pertinent this time of the year for those who own a business. If you are in the market for a business vehicle, consider the Mercedes-Benz Sprinter and Metris. Here’s a quick look at the details of Section 179 tax deductions.

About Section 179 Tax Savings

The IRS tax code’s Section 179 provides considerable tax savings for those who spend on qualifying business vehicles. Buy or upgrade your Mercedes-Benz Metris or Sprinter van this year, use it for business purposes and you’ll save a bundle of money at tax time. If the vehicle or its equipment are bought or financed and used for business purposes, it will qualify for the tax savings in the 2022 tax year. Simply is put the vehicle and/or equipment into service by the final day of the year, use it for business purposes more than 50% of the time, and you will qualify for the tax savings. For businesses looking to make large purchases, the tax savings tops out at $3,780,000, with the equipment purchase capped at $2,700,000. Once you reach the tax savings ceiling, the deduction phases out on a dollar-for-dollar basis. It is possible to deduct the full purchase price of specific vehicles and equipment put into service in the current tax year.

Additional Details About the Section 179 Deduction

The Section 179 vehicle tax deduction represents a golden opportunity for your business to save money at tax time. Buy or lease a Mercedes-Benz Metris or Sprinter, use it for your business, and you’ll be able to subtract the expense from your income at tax time. This means you can save tens of thousands of dollars when buying or leasing an eligible Metris or Sprinter for your business. In short, Section 179 of the IRS tax code makes it easy for your business to pay les taxes by investing in your own operations. As long as your business is considered small or medium in size, you will be able to deduct the cost of your eligible purchase or lease during the current tax year. It is possible that your tax write-off might be larger than your payments for the commercial vehicle in the initial year, making the Metris or Sprinter purchase or lease that much more of a financial boon for your growing business.

Eligible Vans

The Section 179 deduction is appliable to specific vehicles. The vehicle must be a van that is not normally used by what the IRS considers to be a “personal daily driver.” The vehicle is generally required to have a gross vehicle weight rating of 6,000 pounds or more. The Mercedes-Benz Sprinter and Metris are two examples of vehicles that qualify for the tax deduction. The Sprinter is a highly versatile vehicle perfect for small and medium-size businesses. The Sprinter is available in Van, Minibus and Cab Chassis layouts. Your new Sprinter will haul and tow just about anything you need transported from point A to point B. The Mercedes-Benz Metris commercial van, available as a passenger van or cargo van layout, is spacious and surprisingly easy to drive. Get behind the wheel of this beast and you’ll agree it is the perfect van for business use.

Get More Information About Automotive Tax Breaks From Mercedes-Benz of Medford

Our automotive experts are here to help you find the perfect new van or other vehicle. If you are interested in learning more about tax deductions for business vehicles or simply in the market for a new automobile, reach out to Mercedes-Benz of Medford today at (541) 774-1000.