Honda Section 179 Deductions
For 2024, businesses can write off up to $1,220,000 with the Section 179 deduction, subject to a spending cap of $3,050,000.
Honda Section 179 Deductions
Near Ottawa IL
Are you looking for ways to cut business costs while boosting performance? We recommend exploring the Section 179 tax deduction. This IRS tax code was designed to help small and medium-sized businesses invest in their growth by allowing them to deduct up to 100% of the expenses for vehicles used for business purposes.
To take advantage of the Section 179 tax savings this year, you must purchase and put your Honda vehicle into service by December 31, 2024. Visit our Honda dealership near Ottawa today to find the new or pre-owned Honda trucks and vans that can elevate your business!
What Are the Section 179 Tax Deduction Limits for 2024?
The Section 179 tax code was designed to primarily support small and medium-sized businesses. As a result, there are specific spending limits that determine how much a company can deduct. For 2024, businesses can deduct up to $1,220,000 through the Section 179 deduction, with a spending cap of $3,050,000. Once this cap is exceeded, the deduction limit begins to phase out, providing significant savings for small and medium operations looking to enhance their business with essential vehicle investments.
Section 179 allows for a deduction of up to 100% of the costs for qualifying commercial vehicles. Additionally, you can also utilize partial Section 179 deductions for traditional passenger vehicles that are used for business at least 50% of the time. If you’re wondering whether used cars qualify for Section 179, they do! Just remember, the vehicle needs to be "new to you."
Which Honda Vehicles Are Eligible for Section 179??
There are over 150 vehicles that qualify for the Section 179 deduction under current guidelines. This comprehensive list of qualifying models includes (but is not limited to) popular Honda trucks, vans, and large SUVs with a Gross Vehicle Weight Rating (GVWR) over 6,000 pounds, such as:
- Odyssey
The vehicles eligible for the greatest tax savings are trucks with a GVWR over 6,000 pounds and a bed length of at least six feet (e.g., Honda Odyssey). These new Honda vehicles qualify for the maximum first-year depreciation deduction, which can cover up to the full purchase price. SUVs and trucks with a bed length shorter than six feet but a GVWR greater than 6,000 pounds qualify for a first-year depreciation deduction of up to $25,000 of the purchase price, plus 60% depreciation on any remaining balance.
For detailed specifications on gross vehicle weight ratings and other requirements, refer to the IRS guidelines. In general, most Honda trucks, commercial vehicles, and large SUVs purchased or leased for business use will qualify.
As always, it's recommended to consult with your tax professional to ensure the deduction applies to your specific vehicle purchase.
Purchase Your Next Honda Business Vehicle at Bill Walsh Honda Today!
Interested in learning how you can deduct the costs of your next Honda work truck or cargo van? Reach out to Bill Walsh Honda to connect with our auto financing team and discuss the details. We’re here to answer any questions you have about deduction limits and provide tips on maximizing your Section 179 tax savings!
Disclaimer: The information provided on this page regarding the Section 179 tax deduction is for informational purposes only and should not be considered tax advice. Tax laws are subject to change, and individual circumstances may vary. We recommend consulting with a qualified tax professional to understand how Section 179 may apply to your specific situation. Bill Walsh Honda does not guarantee the accuracy or completeness of the information presented and is not liable for any actions taken based on this content. Information accurate at date of publishing, refer to Section179.org for most up-to-date specifications.