End-of-Year Tax Deductions

End-of-Year Tax Deductions

What if you could build your fleet and reduce your tax burden at the same time? If you take advantage of a tax deduction tailored to businesses like yours, you may be able to do just that, but the clock is ticking.

Section 179 of the IRS tax code was created to encourage business investment through a generous tax benefit that allows you to write off a portion of the cost of new or used vehicles for your business.

According to Brian Lockhart, VP National Sales for GM Financial, “Section 179 is a great opportunity for businesses looking to upgrade or expand their fleets.”

That’s because the potential financial advantages are significant. Through Section 179, you may be able to deduct up to the full price on any fleet vehicles during the current year, whether purchased or leased.

Looking at GM’s comprehensive lineup of Section 179-eligible fleet vehicles, that means tax incentives for virtually any kind of fleet. For example:

• Need a truck for your installation work? You may be able to deduct up to 100% of the full purchase price on a Chevy Silverado 3500 HD Chassis Cab.
• Considering an upgrade from sedans to SUVs? A new Buick Enclave comes with possible deductions of up to $25,000 and up to 80% of the remaining purchase price.
• Thinking about going electric? In addition to Section 179 incentives, you may qualify for a federal income tax credit of up to $7,500.

But you’ll need to act quickly. Brian continues, “To potentially qualify for Section 179 tax deductions in 2023, you’ll need to purchase or lease a new vehicle before the end of the year.” And on Jan. 1, 2024, that 80% deduction may drop to 60%.

So if you’re on the fence about purchasing or leasing a new vehicle for your business, there may not a better time to make a move. But before you make any decisions, Brian emphasizes the importance of consulting with your tax professional. Section 179 is straightforward, but you’ll want to make sure you are eligible and following the proper procedures.

If you want to learn more about Section 179, GM Financial’s team of experts can answer your questions and guide you through the process of buying or leasing eligible vehicles. What if you could build your fleet and reduce your tax burden at the same time? If you take advantage of a tax deduction tailored to businesses like yours, you may be able to do just that, but the clock is ticking.

CONSULT WITH AN EXPERT

By Ross Appleton, GM Financial

Ross Appleton loves to help people navigate their toughest challenges. He believes that clarity is the key to flourishing in a complex world, and that a timely dad joke is good for the soul. When he isn’t talking or writing about big ideas, you’ll likely find him reading about them in old books. He is married, and two of his four children currently serve in the U.S. Army.