Savings on a Volvo XC90 with the Section 179 Tax Incentive | Volvo Cars Oklahoma City (2024)

FAQs

Does Volvo XC90 qualify for Section 179? ›

If you purchase or finance qualifying vehicle, the Volvo XC90 qualifies because it is over 6,000lbs GVWR, you can deduct the total purchase price from your gross income. Businesses that purchase a new or used qualifying vehicle during the tax year should qualify.

C. 1. To conform to Section 179 of the Internal Revenue Code, taxpayers shall be allowed to immediately deduct as an expense the cost of certain depreciable business assets in the tax year in which the property is placed in service.

This way you free up as much extra cash as you can now to reinvest in your business. For example, let's say your business tax rate is 35 percent and you buy $200,000 of equipment. By using 179 depreciation, you can deduct up to 80% of the purchase price and save $56,000 in taxes ($160,000 x 35 percent).

The 2021 Volvo XC90 SUV meets the GVWR requirement, meaning that you can claim the Section 179 tax incentive when you buy a new XC90 at our nearby Volvo dealer. To learn more about how you can apply Section 179 tax incentives to your Volvo purchase, stop by Viti Volvo Cars Tiverton.

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Your business could deduct up to $30,500 in Section 179 deductions. There are many Volvo models that qualify for savings. Ask your dealer for details.

The proposed emergency rules implement the provisions of HB 3418, Second Regular Session of the 58th Legislature, which allows a deduction (bonus depreciation) of 100% of the cost of qualifying property the year the property is placed in service, beginning with tax year 2022.

Section 179 of the IRC allows businesses to take an immediate deduction for business expenses related to depreciable assets such as equipment, vehicles, and software. This allows businesses to lower their current-year tax liability rather than capitalizing an asset and depreciating it over time in future tax years.

A Section 179 tax deduction vehicle can be purchased new or used, but the vehicle must be utilized more than 50% of the time for business purposes. Even if you use your vehicle partially for personal use, you may be able to take advantage of a Section 179 tax deduction.

Section 179 has an investment limit of $2,620,000 for 2023, beyond which the deduction starts to phase out. There's no such cap for Bonus Depreciation, making it a better option for businesses making substantial investments in a single year.

Is Section 179 going away in 2024? ›

In 2024, the Section 179 deduction limit for eligible equipment purchases is $1,220,000, and the phase-out threshold is $3,050,000. For example, suppose you purchase or finance $50,000 in qualifying office furniture, equipment, and computers for your business before the December 31, 2024 deadline.

Yes, Section 179 can be used every year. It was made a permanent part of our tax code with the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). How can I calculate the potential savings that the Section 179 Deduction will have on my next purchase?

Did you know that you can claim a federal tax credit when you buy an all-electric or plug-in hybrid Volvo model? All New Volvo Plug-In Electric vehicles are eligible for a credit, the new 2021 Volvo XC40 Recharge for example is eligible for a tax credit of up to $7,500.

1. Electric Vehicle Tax Credit. The first main benefit of buying a 2024 Volvo EX90 will allow owners to receive a tax credit of up to $7,500 for owning this vehicle.

Qualifying Vehicles over 6000 Pounds (lbs)

The eligibility for tax incentives, such as the Section 179 deduction, for vehicles with a gross vehicle weight rating (GVWR) of 6,000 pounds or more is contingent upon several key criteria. First and foremost, the vehicle must have a GVWR of 6,000 pounds or higher.

Section 179 Deduction Calculation Example

You purchase a new heavy SUV with a GVWR of 6,500 lbs. for $60,000, and it is used 60% for business purposes. The business-use portion of the vehicle cost is $36,000 (60% of $60,000). So you can claim the full $30,500 maximum allowed for SUVs as a Section 179 deduction.

Some used car categories eligible under Section 179 include trucks, vans, and SUVs exceeding 6,000 gross vehicle weight rating (GVWR). Your GVWR is the maximum loaded weight of your business vehicles determined by manufacturers.