Business and Fleet Owners Should Know their Section 179 Tax Benefits

As we enter the new year, we begin tax season. While the filing deadline is in April, those who think ahead will see the benefits of a tax return potentially, and for business owners, it’s important to have all the right documents and forms squared away so you’re able to benefit and deduct what you use for work purposes. This includes your new GMC truck or van if it qualifies as a work vehicle via Section 179 on your taxes.

If you’re unfamiliar with Section 179, it’s a tax benefit available to drivers who purchase a new GMC work vehicle or a truck, or van that is new to you for business use. You could be eligible to write off the purchase using Section 179. You could be able to deduct the entire cost of the vehicle in the first year you’re using it for business, so long as you meet the requirements. These requirements include:

• You must use the vehicle for business more than 50 percent of the time, and you can only deduct what you use for work
• Any vehicle eligible for the deduction must meet weight standards of 6,000 pounds to 14,000 pounds
• You cannot write off the purchase pride and then claim the standard mileage deduction in the same year you file
• You cannot deduct more than your business’s net income for the year

Some other guidelines apply as well, as this is for businesses that use commercial trucks and vans. It’s not for anyone who does rideshare apps like Uber or Lyft, those are different deductions. We’re able to assist business owners who use GMC trucks and vans in their fleets around Fort Collins, Boulder, Loveland, Greely and Denver as well as those in Cheyenne, WY who’d like to learn more about their Section 179 eligibility and benefits. Contact us and we can discuss it with you.