Section 179 Tax Deduction

BMW Section 179 Tax Deduction in Savannah, GA

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The Section 179 Tax Deduction was designed to bolster small businesses’ mobility and help them save on certain expenses. If you visit our BMW dealership in Savannah, GA, to buy or lease an eligible BMW vehicle, you may be able to claim up to 100% off the vehicle’s purchase price on your taxes. A new X5, X6, X7, iX, XM, iX3, and i7 xDrive60 can do wonders for any small or medium-sized business, so visit Critz BMW today and discover how the Section 179 Tax Deduction can positively impact your company. For the most up to date information, refer to official government tax information.1

As a result, business owners who purchase a model listed above on or after January 20, 2025 for use in their business may deduct up to 100% of the vehicle purchase in the year the vehicle is placed in service, as the IRS categorizes vehicles that weigh more than 6,000 pounds differently from other passenger automobiles subject to the luxury auto depreciation limitations. The applicable 6,000-pound threshold is based on gross vehicle weight rating (GVWR) for SAVs/SUVs and unloaded gross vehicle weight for passenger automobiles, such as the BMW i7 xDrive60.

Example:

  • BMW X5 sDrive40i Purchase Price: $70,000 with 100% Business Use
  • A 100% bonus depreciation deduction ($70,000 x 100%) = $70,000.

This presents a substantial tax savings opportunity for business owners. To qualify, the vehicle must be one of the models listed above, must be purchased (not leased), and must be used more than 50% for business purposes. This deduction applies to both new and used vehicles acquired by purchase, so long as the acquiring taxpayer had not previously used the acquired vehicle and did not acquire the vehicle from a related party.

Customers with questions regarding this topic should consult with their individual tax adviser to determine their eligibility for this potential deduction.

Section 179 Requirements

Learn how to take advantage of the Section 179 Tax Deduction by visiting our Savannah BMW dealer. When you’re interested in a new BMW for your business, we can help you save on your purchase if it's used for business purposes more than 50% of the time. No matter which brand-new or new-to-you model you decide to drive, the Section 179 Tax Deduction will make your fiscal year look a whole lot better. Some important information include:

  • Vehicle must be delivered and put into service by 12/31/2026
  • 2026 Business Limit: $2,560,000
  • Vehicles must have a Gross Vehicle Weight Rating (GVWR) between 6,000 and 14,000 pounds (or exceed 14,000 pounds for true commercial cargo vans)
  • Business Use Requirement: The vehicle must be used for business purposes more than 50% of the time and placed in service by December 31, 2026.

*Lease or Purchase: Section 179 benefits apply whether you finance, purchase outright, or lease the vehicle.

BMW Vehicles Eligible for Section 179

There's a variety of BMW models that fall under the Section 179 tax break including X5, X6, X7, iX, XM, iX3, and i7 xDrive60.

If a new BMW would benefit your business, contact Critz BMW with any questions you may have about the Section 179 Tax Deduction. At our Georgia BMW dealership, we’re happy to provide small businesses with the vehicles that can help them succeed, so stop by today and meet with our BMW finance experts.

1 Information accurate at date of publishing. Refer to https://www.section179.org for latest updates.