View Section 179 Leased Vehicle Background. Section 179 of the united states internal revenue code (26 u.s.c. Section 179 deduction for business vehicle 2018.
Section 179 is a special deduction that allows you to write off any equipment in the year it has been purchased. However, the section 179 deduction is limited to $25,000 for trucks and suvs. It does not apply to leased or rented property.
Seeking opinions from people familiar with 179 vehicle purchases.
The advantage to leasing or financing equipment and then taking the section 179 deduction is the fact that you can deduct the full amount of the equipment, without paying the full. I have a work vehicle at the end of a 3 yr lease that qualifies for a section 179 tax credit of $16k federal/$3k state per my accountant if i buy it. The section 179 limitation must be reduced for vehicles that are not used 100% for business. Whether the business vehicles are purchased, financed or leased, the deduction of all these vehicles remains the same.