Sweeney Buick GMC

Small Business Customers May Claim Up to $510,000 Tax Deduction


What is Tax Section 179?

The Section 179 Deduction was enacted as part of the IRS Tax Code in 2008 to help small business with their vehicle and equipment purchases. This law allows commercial and fleet customers to claim the full purchase price of certain GMC Vehicle totalling up to $510,000 (for eligible vehicles) as a tax deduction. ****


The amounts that can be deducted depend on the vehicles purchases. For example, passenger vehicles bought by a business may qualify for deductions of $11,160, $11,560 or $25,000. A business that spends up to $2,030,000 on multiples vehicles can take a deduction of up to $510,000. 


Here is the full GMC line up and their applicable discounts:

2017/2018 Model Year VehicleMaximum Deduction Allowed
Acadia Denali Up to $25,000*
Canyon Up to $25,000*
Savana Cargo Van Up to $11,500***
Savana Cutaway Up to $510,000** (Aggregate)
Savana Passenger Van Up to $510,000** (Aggregate)
Sierra 1500 (Short Box) Up to $510,000** (Aggregate)
Sierra 1500 (Standard and Long Box) Up to $25,000*
Sierra 1500 Denali (Short Box) Up to $510,000** (Aggregate)
Sierra 1500 Denali (Standard and Long Box) Up to $510,000** (Aggregate)
Sierra HD (Standard and Long Box) Up to $510,000** (Aggregate)
Sierra HD Chassis Cab Up to $510,000** (Aggregate)
Terrain Up to $11,500***
Terrain Denali Up to $11,500***
Yukon Up to $25,000*
Yukon Denali Up to $25,000*
Yukon XL Up to $25,000*
Yukon XL Denali Up to $25,000*
Vehicles must be placed in service during the 2017 tax year to be eligible.
Aggregate: Total deduction is aggregate, no per-vehicle purchase price limit.

*For vehicles that qualify as sport untility vehicles, including certain trucks and vans under the IRS Code, the maximum amount that may be expensed is $25,000 of the total purcahse price. The $25,000 expense cap contributes to the $510,000 dollar limit and $2,030,000 investment under Section 179. 

**For vehicles that qualify as passenger automobiles under the IRS code, there is a $11,500 per vehicle depreciation deduction cap for certain SUVs, trucks, and vans placed in service during 2017. 

***The tax incentives are available for depreciable tangible property that is acquired by purchase for use in the active conduct of a trade or business. Additional limitation based on purchases. For the 2017 tax year, the aggregate deduction of $510,000 under iRS code section 179 is most beneficial to small businesses that place in service no more than $2,030,000 of Section 179 property during the year. For every dollar spent on Section 179 property in excess of the limit of $2,030,000 the $510,000 expense-tax deduction decreases by a dollar. Certain vehicles, models and restrictions apply.

****Each individuals tax situation is unique; therefore, please consult your tax professional to confirm vehicle depreciation deduction and tax benefits. For more details visit www.irs.gov

Additional Tax Section 179 Facts:


-Vehicle titles must be in the company's name. 

-An eligible vehicle msut be used for business at least 50 percent of the time. 

-Businesses can still take advantage of other incentivesa nd Business Choice offers in addition to these potential tax savings. 

Contact Information