Section 179 Tax Savings
With Mercedes-Benz of Chicago
Section 179, a business tax code, is a useful tool that offers tax deductions on select
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
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
tax savings right away, rather than receiving them bit by bit over time through depreciation. It gives
businesses the financial leeway to purchase vehicles they need right away, rather than waiting.
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.
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 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
• To qualify, the percentage of business use for the vehicle, equipment or software
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
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
179 tax deduction for qualified
vehicles. Your tax rate and eligibility may vary. Please consult a tax professional for more information on
federal tax rate and potential tax
savings available to you for qualifying purchases. This information does not constitute, nor is it intended
be, legal, tax, financial planning, or
investment advice and should not be relied upon as such.