Close

Contact Us

Sales: (312) 628-4500 Service: (312) 628-4444 Car Wash: (312) 764-1396
  Sales: 9am-8pmService: 6:30am-7pm

Section 179 Tax Savings

With Mercedes-Benz of Chicago

What is Section 179?

Section 179, a business tax code, is a useful tool that offers tax deductions on select business equipment – such as vehicles – as an alternative to asset depreciation. It gives you a chance to deduct up to $26,200* of a qualifying vehicle from your business’s gross income during that tax year—that’s up to $5,502 in savings.** In some cases you may even be able to deduct the full purchase price of your vehicle. (Please consult your tax professional to find out if you qualify for the full amount). It’s especially helpful for small businesses who want their tax savings right away, rather than receiving them bit by bit over time through depreciation. It gives many businesses the financial leeway to purchase vehicles they need right away, rather than waiting.

What business vehicles may qualify?

You may qualify if you:

• Are a business that purchased or financed qualifying new or used business equipment, including certain business-use vehicles, during the 2021 tax year.

• Put the equipment into service between January 1, 2021, and December 31, 2021.

• Used this equipment for business purposes more than 50% of the time.

• Spent less than $3,670,000 on this equipment.

Learn More

How much could I deduct?

These are the limits:

• You cannot write off more than $1,050,000.

• The total amount of the equipment purchase cannot be more than $2,620,000. It phases out dollar-for-dollar after that, so once $3,670,000 is spent, the deduction goes away entirely.

Section 179 highlights

• Section 179 allows qualifying businesses to deduct up to the full purchase price of certain new or used vehicles, equipment and/or software purchased and placed into service during the tax year.

• To qualify, the percentage of business use for the vehicle, equipment or software must be more than 50%.

*$26,200 tax deduction for qualifying vehicles based on current Section 179 of U.S. tax code and maximum deduction permitted for such vehicles under Section 179. Vehicle must be purchased for business use. Please consult your tax professional for more information on applicability of deduction and whether you qualify for the maximum amount available.
**$5,502 tax savings based on 21% federal corporate tax rate and eligibility to claim full $26,200 IRS Section 179 tax deduction for qualified vehicles. Your tax rate and eligibility may vary. Please consult a tax professional for more information on your federal tax rate and potential tax savings available to you for qualifying purchases. This information does not constitute, nor is it intended to be, legal, tax, financial planning, or investment advice and should not be relied upon as such.
Offer valid through December 31, 2021. For more details, visit www.mbvans.com/en/section-179-tax-deductions and www.irs.gov
Search
Search
MBUSA Microchip Update
Contact Us
Chat

Get Your Lease Offer Now

  •  
  • Thanks for inquiring on lease payments for this vehicle. In order to provide you with the most accurate payment inclusive of taxes we just need a couple questions answered. 1. What zip code do you live in. Taxes are based on where you live and not where you buy the vehicle. 2. How many miles a year do you drive? We offer mileage options from 7500/yr to 25,000/yr.
  •  
  • This field is for validation purposes and should be left unchanged.
Mercedes-Benz of Chicago 41.9110636, -87.6662115.