As we approach the end of 2023, it’s time to consider strategic investments that can help your business grow while also providing significant tax benefits. One such investment is in business vehicles, and at Lynch GM Superstore in Burlington, we have a wide range of Chevrolet and GMC vehicles that could qualify for the Section 179 tax deduction.
What is Section 179?
Section 179 is a tax code created to encourage businesses to buy equipment and invest in themselves. Typically, when your business buys certain items of equipment, it gets to write them off a little at a time through depreciation. But Section 179 allows businesses to write off the entire purchase price of qualifying equipment for the current tax year.
This deduction is applicable to a variety of business equipment, including vehicles, and can significantly reduce your tax burden. However, not all vehicles qualify for this deduction.
Qualifying Vehicles for Section 179
The Internal Revenue Service (IRS) categorizes qualifying vehicles for Section 179 into three primary groups: Light, Heavy, and Other. The allowable deduction differs for each group and may be increased annually by the IRS to account for inflation.
Light vehicles are those with a Gross Vehicle Weight Rating (GVWR) under 6,000 pounds. For 2023, these vehicles have a Section 179 tax deduction limit of $12,200 in the first year they are used.
Heavy vehicles are those with a GVWR of at least 6,000 pounds but no more than 14,000 pounds. For 2023, a vehicle qualifying in the “heavy” category has a Section 179 tax deduction limit of $28,900.
Other vehicles include those with a GVWR over 14,000 pounds or vehicles modified for nonpersonal use. For 2023, any vehicle meeting these guidelines is not subject to a Section 179 tax deduction limitation. You may deduct up to 100% of the cost of any vehicle falling into this category.
Why Purchase from Lynch GM Superstore?
At Lynch GM Superstore, we offer a wide range of Chevrolet and GMC vehicles that fall into the qualifying categories for the Section 179 deduction. Whether you need a light-duty pickup for your landscaping business, a heavy-duty truck for your construction company, or a fleet of vehicles for your delivery service, we have you covered.
Moreover, our knowledgeable team can guide you through the process, ensuring you choose the right vehicle for your business needs. We also work closely with local lenders to provide you with the best financing options.
Remember, to qualify for the Section 179 deduction for the 2023 tax year, the vehicle must be purchased and put into use by December 31, 2023. So, don’t wait! Visit us at Lynch GM Superstore in Burlington today and drive your business to new heights while enjoying significant tax savings.
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