Certified Center
BMW MODELS THAT QUALIFY FOR SECTION 179 BUSINESS TAX DEDUCTION:
BMW of Cincinnati North wants to make you aware of section 179 in the tax law that allows you to acquire a BMW X5, X6, X7, iX, XM, or 7 Series with a very significant tax write off. This benefit is one that everyone may not be aware of and is a very significant tax deduction that is available when the vehicle is acquired for business use.
Section 179 of the IRS tax code allows businesses to deduct the
full purchase price of qualifying equipment purchased or financed during the
tax year. That means that if you buy (or finance) a piece of qualifying
equipment, you can deduct the FULL PURCHASE PRICE from your gross
income. Vehicles weighing more than 6,000 pounds GVWR but less than 14,000
lbs receive a maximum first-year deduction of up to $28,900 in
2024 (up from $27,000 in 2023). After that, you follow a Bonus Depreciation
schedule.
Bonus Depreciation is taken after
the Section 179 deduction is taken. For 2024, Bonus Depreciation is 80%. Thus,
it is useful to very large businesses spending more than whatever Section 179's
spending limit is for that year. Also, businesses with a net loss in a given
tax year qualify to carry-forward the Bonus Depreciation to a future year.
Disclaimer: BMW of Cincinnati North is not an accountant nor provides tax advice. Customers with questions regarding this topic should consult their individual tax adviser to determine their eligibility for this deduction. Information must be verified with a CPA and is listed purely for informational purposes.Â