Tax Deductions Deduct up to 100% Of The Purchase Price Of Your Fleet Upgrades
Small Business Customers May Claim Up to 100% of the Purchase Price of a vehicle
Under new depreciation laws, your business might be able to deduct up to 100% of the purchase on an unlimited number of qualifying vehicles that you will be using for business purposes!
With these new tax depreciation laws, this is the perfect time to upgrade your fleet of vehicles and to lower your business' tax liability.
|Model||First Year Depreciation Limits|
|Canyon*||Up to $18,000|
|Canyon Denali*||Up to $18,000|
|Terrain*||Up to $18,000|
|Terrain Denali*||Up to $18,000|
|Siierrra 1500**||100% of Purchase Price Per Vehicle|
|Sierrra 1500 Denali**||100% of Purchase Price Per Vehicle|
|Sierrra 2500HD**||100% of Purchase Price Per Vehicle|
|Sierra 3500HD Denali**||100% of Purchase Price Per Vehicle|
|Sierra 3500HD & HD Chassis Cab**||100% of Purchase Price Per Vehicle|
|Yukon & Yukon XL**||100% of Purchase Price Per Vehicle|
|Yukon& Yukon XL Denali**||100% of Purchase Price Per Vehicle|
|Acadia**||100% of Purchase Price Per Vehicle|
|Acadia Denali**||100% of Purchase Price Per Vehicle|
|Canyon Crew Cab 4WD**||100% of Purchase Price Per Vehicle|
|Savana Passenger Van**||100% of Purchase Price Per Vehicle|
|Savana Cutaway**||100% of Purchase Price Per Vehicle|
|Cavana Cargo Van**||100% of Purchase Price Per Vehicle|
Purchasing a vehicle for your business can be a considerable expense, especially if you're planning on purchasing a large SUV or truck. That's part of the reason why the IRS offers you the opportunity to deduct the cost of a vehicle purchase from your taxable income if the vehicle weighs over 6,000 pounds. To help you figure out if you're entitled to claim this tax saving, we've put together an explanation of the automotive tax deduction and listed the Buick and GMC vehicles that qualify.
What Is the 6,000 Pound Vehicle Tax Deduction?
The 6,000-pound vehicle tax deduction is a rule under the federal tax code that allows people to deduct up to $25,000 of a vehicle's purchasing price on their tax return. The vehicle purchased must weigh over 6,000 pounds, according to the gross vehicle weight rating (GVWR), but no more than 14,000 pounds. The truck or SUV must be used for business purposes in order to qualify.
The idea behind the tax credit is that it will encourage business owners to invest in new vehicles to support their company's growth.
Details on the tax deduction are included in Section 179 of the federal tax code. The terms state that the vehicle has to be put into service by December 31 of the tax year in order to qualify for the deduction. To prove this, you may need to keep a record of the trips you take with the vehicle, including the purpose of the trip, so you can prove that it was work-related.
Are There Other Guidelines to Qualify?
Section 179 stipulates several conditions that you must meet in order to claim the deduction. Firstly, the SUV or truck weighing over 6,000 pounds must be purchased using a loan agreement recognized by the IRS or leased. A further requirement is that your business name must appear on the vehicle title. This means that if your personal name appears on the title, you won't be able to qualify for the deduction.
Even if you don't use the vehicle for business purposes all the time, you may still be able to claim part of the deduction. Typically, the maximum deduction you can claim will vary according to the percentage of time you use the SUV or truck for work-related reasons. For example, if you use your GMC Yukon 80 percent of the time for your business needs, the maximum deductible amount would be $20,000, which is 80 percent of the $25,000 maximum under Section 179. However, if you use the vehicle for business purposes less than 50 percent of the time, you won't be eligible for any deduction.
Finally, it's worth knowing that the IRS has introduced an upper limit for Section 179 deductions of $1 million. This means that you can make large tax savings if you need to purchase several vehicles to upgrade your fleet or expand your existing one.
SUV Over 6000 lbs by Buick & GMC
Now that you know how the 6,000-pound vehicle tax deduction works, let's take a look at the vehicles in our inventory that are eligible for the deduction.
Buick Enclave Depreciation
It is projected that the Buick Enclave will depreciate 54% after 5 years and has the potential to have a 5 year resale value of $22,059.
The Enclave is a three-row SUV over 6,000 pounds in weight that can seat up to seven people. In addition to offering plenty of accommodation for passengers, it has over 97 cubic feet of storage with both rear rows folded down. This makes the Enclave a good choice if you regularly transport large items for your business. The Enclave's 3.6-liter V-6 engine provides solid power for this SUV, topping out at 310 horsepower.
GMC Acadia Depreciation
It is projected that the GMC Acadia will depreciate 50% after 5 years and may have the potential to have a 5 year resale value of $20,740.
The Acadia is another three-row SUV that can seat six or seven, depending on the type of seats you choose for the second row. There's plenty of legroom for adult passengers, making the Acadia a good choice if you're regularly driving people around. You can choose between two engine options in the Acadia: a turbocharged V-4 capable of putting out 228 horsepower and a V-6 with 310 horsepower.
GMC Yukon Depreciation
It is projected that the GMC Yukon will depreciate 42% after 5 years and has the potential th have a 5 year resale value of $38,314.
If the Acadia and Enclave are too small for your business needs, the GMC Yukon may fit the bill. It can be configured to seat seven or eight and features a vast amount of cargo storage. With the two rear rows folded down, the Yukon has over 122 cubic feet of capacity, while the Yukon XL offers a whopping 144 cubic feet. Two V-8 engines are on offer to move this colossus around, a 355-horsepower offering and a 420-horsepower unit. The Yukon also boasts an impressive 8,400-pound towing capacity, which is ideal if you need to haul a trailer to get the job done.
Trucks Over 6000 lbs
GMC Sierra Depreciation
It is projcted that the GMC Sierra 1500 will depreciate 37% after 5 years and may have the potential to have a 5 year resale value of $28,816.
If your business needs a full-sized truck, the Sierra 1,500 features plenty of towing and hauling capabilities. It has three cargo beds to choose from, ranging from an 8-foot-long monster to a more compact 5 feet 8 inches. There are also three cab options capable of seating between three and six people. You can select from five engine options depending on your needs, with a powerful V-8 being the best option if you plan on doing a lot of towing. The Sierra 1,500's maximum towing capacity is 11,800 pounds. If fuel efficiency is top of your list, you may want to opt for the turbo diesel engine.
GMC's commercial trucks, the Sierra 2,500 and Sierra 3,500, also qualify for the 6,000-pound vehicle deduction.
Find the Perfect Vehicle for Your Business at Sweeney Buick GMC in Youngstown
We hope that if you decide to purchase a vehicle for your business and take advantage of the 6,000-pound vehicle deduction, you'll find what you're looking for at our Youngstown dealership. Whether your business needs a roomy SUV or a brawny truck, you can find many great options in our extensive inventory. Remember to look at our finance center and incentives pages to ensure you're getting the best deal for your vehicle purchase.
If you have questions about any of the vehicles we have on offer, or you'd like to get the purchasing process started, don't hesitate to contact us today.