Section 179 Deduction FAQ: 2018 Fleet & Company Car Tax Rules
Want to know what the Section 179 expense deduction is, how it works, and if you're eligible to receive a tax break for your company or fleet vehicle in 2018? Read through our commercial car tax FAQ to find answers to all your questions.
What is the Section 179 vehicle tax deduction?
If you own and operate a small business or large corporation, the Section 179 tax program allows you to write off the cost of any company car or fleet vehicle as a taxable business deduction. We recommended discussing your options with a tax professional as well as a member of the Business Certified team at Nissan of Alhambra.
How much money can I save with the Section 179 deduction?
Commercial car tax caps for 2018 vary by vehicle weight and business usage rate.
- Passenger cars: $11,160 total deduction per vehicle
- Passenger crossovers, vans & trucks: $11,560 total deduction per vehicle
- Heavy trucks & commercial vans: $25,000 total deduction per vehicle
Section 179 business tax incentives have a maximum cap of $1 million (on $2.5 million in fixed assets) for the 2018 tax year and beyond. Bonus depreciation deductions are also available. Review the 2018 H.R.1 bill regarding Section 179 for updates on caps, restrictions, and limitations.
Which Nissan models qualify as Section 179 vehicles?
The Section 179 tax rules stipulate that any automobile weighing under 14,000 pounds can be deducted as a business expense depending on business usage rate. Therefore, any Nissan vehicle qualifies! Here is a list of eligible Section 179 Nissan models, broken down by maximum deduction:
- $25,000 Deduction: Nissan TITAN, TITAN XD, Armada, NV Passenger, NV Cargo (NV1500, NV2500, NV3500)
- $11,560 Deduction: Nissan Frontier, Rogue Sport, Rogue, JUKE, Murano, Pathfinder, NV200 Compact Cargo Van
- $11,160 Deduction: Nissan LEAF, Versa, Versa Note, Sentra, Altima, Maxima, 370Z, GT-R
If you'd like more details about purchasing or leasing your Nissan fleet vehicle near Van Nuys contact or visit the Business Certified team at Nissan of Alhambra.
What is a business usage rate?
Any passenger car, truck, SUV, or van (exceptions apply) that is used for business at least 50% of the time is eligible for the Section 179 expense deduction. Many heavy, non-SUV vehicles, like an NV Cargo Van, are automatically eligible for the full tax break, regardless of business usage rate.
All Section 179 fleet vehicles, whether new or used, must be purchased and placed in service before the end of the current tax year to be eligible for this write-off.
Does my company qualify for this commercial vehicle deduction?
If your business purchases, finances, or leases a fleet vehicle or company car during the 2018 tax year, you are eligible to deduct those vehicle taxes as a Section 179 expense, up to the maximum deduction allowance. Contact Nissan of Alhambra today to see if you qualify for this federal tax deduction.
Who do I contact to inquire about a Nissan Commercial Vehicle?
If you live in or around Van Nuys, call our Nissan Commercial Vehicle specialists at (866) 267-2092 to learn more about leasing or financing a Nissan company car or van. You could save over $1 million on an entire fleet!