Generally speaking, the Section 179 tax deduction applies to passenger vehicles, heavy SUVs, trucks and vans that are used at least 50% of the time for business-related purposes. For example, a pool cleaning business can deduct the purchase price of a new pickup truck that is used to get to and from customers’ homes.
Millions of small businesses and solo business owners use small vehicles on a daily basis. These include passenger cars, crossovers, and small utility trucks. Small vehicles that weigh under 6,000 pounds have a Section 179 deduction limit of $10,100 in the first year they are used, and $18,100 with bonus depreciation.
If the vehicle is not used 100% of the time for business, the deduction allowance is reduced proportionately. For example, if a florist purchases a van that is used 50% for business purposes, the limit is $5,050 ($10,100 x .50).
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