Utilize the Tax Code 179 at Bob Moore Cadillac Edmond

October 12th, 2023 by

2024 gray Cadillac Escalade driving on a scenic route during sunset

Maximize Your Business Investments with Section 179

Operating a successful business in the Edmond and surrounding Oklahoma City areas means making smart financial decisions for your company’s future. One great decision business owners can make is utilizing the Section 179 tax code when purchasing a Cadillac or upgrading their operations. Bob Moore Cadillac of Edmond invites all business owners interested in the Section 179 tax deduction to stop by and explore the vehicles that qualify for deduction in our selection.  

 

IRS Tax Code Section 179

If you’re a business owner researching ways to improve your bottom line and maximize business savings, you may have heard of Section 179 of the IRS Tax Code. This provision was created to incentivize business owners to invest in their operations with less risk attached. It allows businesses to deduct a portion or, in some cases, the total purchase price of vehicles, equipment, and machinery purchased or financed during the tax year. 

 

How to Qualify for Tax Code 179

Businesses that purchased, financed, or leased vehicles within the tax year may qualify for a deduction under Section 179 of the IRS Tax Code. Here are some factors that must be met to qualify for a deduction:

  • The vehicle or equipment purchased must enter your business as a conscripted vehicle within the same year the deduction is filed.
  • The vehicle or equipment purchased must be used for more than 50% of the time for business purposes.
  • The total amount written off during a tax year should not exceed the amount spent on vehicles or equipment.

 

Increased Limits to Tax Code 179 in 2023

It’s important to note that the Section 179 Tax Code provisions in 2023 for both deduction limits and the total spending cap.

  • The Section 179 deduction limit for 2023 was raised to $1,160,000 (previously $1,080,000 ), and the total equipment purchase limit was raised to $2,890,000 (previously $2,700,000). 
  • The 2023 Spending Cap on equipment purchases was also raised to $4,050,000 (previously $3,780,000).

 

Vehicle Deduction Limits 

The vehicle purchased may qualify for a partial or complete deduction depending on the it’s body style and over-usage. Understanding the difference between both is essential before making any final decisions.

 

Work-centric vehicles, mainly used for business, such as shuttle vans, cargo vans with a fully-enclosed driver’s compartment/cargo area with no seating behind the driver’s seat, “Singular use” business vehicles like ambulances or hearses, and over-the-road Tractor Trailers qualify for the full deduction if used for business 100% of the time.

 

Trucks and SUVs have a deduction limit. Vehicles considered sport utility vehicles (SUV) that have been put into service before Dec. 31st have a maximum deduction of $28,900. This includes Pickup trucks with a full-size (8’) cargo bed and Heavy SUVs with a GVWR (Gross Vehicle Weight Rating) between 6,000 lbs and 14,000 lbs. 

 

Which Cadillacs Qualify for Tax Code Section 179?

Cadillac produces a handful of vehicles that qualify for a partial passenger vehicle deduction, including the Cadillac CT4, Cadillac CT5, and the Cadillac XT4. Models like the Cadillac XT5, XT6, Escalade, and Escalade ESV may qualify for a higher deduction based on their GVWR and overall usage. 

 

Explore Your Options at Bob Moore Cadillac Edmond

If you’re interested in growing your business operations by leveraging the Section 179 tax code with a new or used Cadillac, stop by Bob Moore Cadillac of Edmond. We have a great selection of qualifying vehicles to take your company to the next level and boost your bottom line. Browse our online showroom of Section 179 eligible vehicles or stop by our Cadillac dealership to learn more.

 

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