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Year-end is a common time for businesses to plan vehicle purchases. See what the IRS says about Section 179, including how it applies to heavier vehicles and Sprinter vans, and how our team can help with timing and delivery.
Section 179 of the Internal Revenue Code lets a business elect to deduct the cost of qualifying property in the year it is placed in service, instead of recovering that cost through depreciation over several years.
Property generally must be used more than 50% for business to qualify, and the deduction is tied to the business-use percentage.
The IRS treats heavier vehicles (over 6,000 lbs. gross vehicle weight rating) differently than lighter passenger automobiles.
The property must be placed in service during the tax year you claim it. For calendar-year taxpayers, that means by December 31.
The IRS sets dollar limits each year, plus a taxable-income limitation. Special caps can apply to certain SUVs.
Source: IRS Publication 946, How To Depreciate Property, and the Instructions for Form 4562. Links are listed at the bottom of this page.
Pick a vehicle type and tell us how you plan to use it. We will confirm weight ratings and delivery timing. Eligibility varies by vehicle and by how your business uses it.
Every business is different. This is a general planning outline, not a substitute for advice from your accountant or tax professional.
Ask whether Section 179 and bonus depreciation make sense for your business and your income this year.
Choose a vehicle you will use primarily for business. Ask us for the gross vehicle weight rating (GVWR) of any vehicle that interests you.
Allow time for financing, paperwork, and delivery so the vehicle is in service before the tax year closes.
Save your purchase documents and a business-use log. Your tax professional reports the election on IRS Form 4562.
We do not publish a list of eligible models, because qualification depends on the specific vehicle, how you configure it, and how your business uses it. Here are the general rules to bring to your tax professional.
The manufacturer lists the GVWR on the certification label, usually on the driver's door jamb. Our team can confirm the GVWR for any Mercedes-Benz in our inventory before you decide.
Ask about a specific vehicleMercedes-Benz USA states that a Sprinter van may be considered Section 179 property and qualified property under Section 168(k) (bonus depreciation) for federal income tax purposes. Eligibility depends on your business and tax situation.
Mercedes-Benz USA also notes that upfits or modifications purchased at the time of sale may be eligible. Ask your tax professional how that applies to you.
Tell us how the van will be used and we will help you spec it. Mention Sprinter in the form below and we will route you to the right person.
Ask about a SprinterTell us what you are looking for and a member of our team will follow up. We can help with vehicles and delivery timing. For tax questions, please consult your tax professional.
It is a provision of the Internal Revenue Code that lets a business elect to deduct the cost of qualifying property in the year it is placed in service, rather than depreciating it over several years. Bonus depreciation under Section 168(k) is a separate provision that may also apply.
No. Qualification depends on the vehicle's weight rating, how your business uses it, and your own tax situation. Your tax professional makes the final call.
Generally, the date the property is ready and available for its business use. A purchase that is not delivered and in use before year-end may not count for that tax year, so plan your timing with your tax professional.
How a vehicle is acquired can change how the rules apply. Please review buying, financing, and leasing options with your tax professional before you decide.
No. We can answer questions about our vehicles and help with delivery timing. We are not tax advisors, and we encourage you to consult a qualified tax professional.
Important: This page provides general information only and is not tax, legal, or accounting advice. Mercedes-Benz of White Plains and its employees are not tax advisors. Tax laws change and each business's situation is different. Vehicle eligibility depends on factors such as GVWR, configuration, and business use, which can vary by model, trim, and options. Consult a qualified tax professional to determine whether and how Section 179 or bonus depreciation applies to you.
Mercedes-Benz and related marks are trademarks of their respective owners. Mercedes-Benz of White Plains is an independent franchised dealer.
