Get up to $25,000 in tax deductions

Section 179 Tax Savings

The Section 179 of the IRS tax code allows businesses to deduct the full purchase costs of any qualifying vehicles that are bought or financed during the tax year. In other words, if you buy or lease a car for your business, you may qualify to subtract the expense from your income.

Section 179 Deduction at Mercedes-Benz of Smithtown

Buy or lease a qualifying Mercedes-Benz and receive a tax-deduction up to $25,000. Section 179 of the tax code rewards small- and medium-sized companies for investing in themselves by offering a tax break on certain purchases and leases, including eligible new and used Mercedes-Benz vehicles.

It gives you a chance to deduct up to $25,000 of a qualifying vehicle from your business’s gross income during that tax year—all at once.
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.

Section 179 Tax Savings

You may qualify if you:

• Are a business that purchased or financed new or used business equipment—including business-use vehicles—during the 2019 tax year
• Put this equipment into service between January 1, 2019 and December 31, 2019
• Used this equipment for business purposes more than 50% of the time
• Spent less than $3,500,000 on this equipment

Section 179 Tax Savings

These are the limits:

• You cannot write off more than $1,000,000
• The total amount of the equipment purchased cannot be more than $2,500,000. It phases out dollar-for-dollar after that, so once $3,500,000 is spent, the deduction goes away entirely.