Cadillac Section 179 Tax Deductions

Tax Deductions for Cadillac Vehicles

Your Small Business May Qualify For A Tax Deduction Of Up To 100% Of The Purchase Price Of Your Cadillac Vehicles.

Running a business comes down to your bottom line, and now you can make yours even stronger. Under new tax depreciation laws, your business may be eligible to immediately deduct up to 80% of the purchase price of an unlimited number of qualifying Cadillac vehicles purchased in 2023 for business use.

All passenger automobiles can qualify for a deduction of up to $20,200, while larger vehicles can qualify for a deduction equal to the full purchase price. Consult your tax advisor for tax implications and savings opportunities.

With these new tax depreciation laws, you can save next tax season on the vehicles your business purchases today. There’s never been a better time to add the quality and dependability of Cadillac vehicles to your fleet. To learn more about current offers, contact Stevens Creek Cadillac for details and vehicle eligibility.

*Please note that any tax information found on this page should not be considered tax advice. Tax codes change and you should consult with a qualified tax professional or the IRS for current guidelines on tax deductions.

Section 179 Tax Deductions on Vehicle Purchases

Section 179 of the IRS tax code details both what and how much businesses can deduct from their taxes from qualifying purchases. This deduction applies to the purchase of business-use vehicles. The deduction amount varies depending on the size of the vehicle. Qualifying passenger vehicles are eligible for a fixed deduction (up to $20,200 per vehicle for 2023), while larger vehicles can qualify for a deduction of up to 80% of the purchase price.

Please use the links below to learn more about your potential tax savings.

What Business Vehicles Qualify for the full Section 179 Deduction?

Note that because many vehicles can serve business and personal function both, the rules for business vehicle deductions are always evolving, and can be complicated. It’s easier to list the typical vehicles that will generally qualify for a full section 179 deduction, and then discuss the rules for other vehicles.

Many “work vehicles” that, by their nature, are not likely to be used for personal purposes will usually always qualify for full Section 179 deduction. This includes the following vehicles:

• Vehicles that can seat nine-plus passengers behind the driver’s seat (i.e.: Hotel / Airport shuttle vans, etc.).
• Vehicles with: (1) a fully-enclosed driver’s compartment / cargo area, (2) no seating at all behind the driver’s seat, and (3) no body section protruding more than 30 inches ahead of the leading edge of the windshield. In other words, a classic cargo van.
• Heavy construction equipment will qualify for the Section 179 deduction, as will forklifts and similar.
• Typical “over-the-road” Tractor Trailers will qualify.

What are the limits on Typical Passenger Vehicles used for Business?

For passenger vehicles, trucks, and vans (not meeting the guidelines below), that are used more than 50% in a qualified business use, the total deduction is limited to up to $18,200 per vehicle.

Exceptions include the following vehicles:

• Ambulance or hearses used specifically in your business
• Taxis, transport vans, and other vehicles used to specifically transport people or property for hire.
• Qualified non-personal use vehicles specifically modified for business (e.g. work van without seating behind driver, permanent shelving installed, and exterior painted with company’s name)
• Other heavy “non-SUV” vehicles and trucks with a cargo area at least six feet in interior length (this area must not be easily accessible from the passenger area.) To give an example, many pickups with full-sized cargo beds will qualify for a full deduction (although some “extended cab” pickups may have beds that are too small to qualify).

Cadillac Passenger Vehicles

These vehicles fall under the 'passenger vehicle' deduction guidelines.

Cadillac SUVs that qualify for up to the full purchase price deduction

No per-vehicle or aggregate limitation. Total deduction per SUV or truck with GVWR of more than 6,000 lbs. but less than 14,000 lbs.