As we move through 2025, business owners have a powerful financial tool at their disposal: the enhanced Section 179 tax deduction. At New Rochelle Chevrolet, we know that navigating tax code changes can be complex, but understanding these updates can make a significant impact on your bottom line. Let's break down what the Section 179 deduction is and how it can benefit your business this year.
In simple terms, Section 179 of the IRS tax code is designed to help businesses grow. It allows you to deduct the full purchase price of qualifying equipment and vehicles in the year they are purchased and put into service, rather than writing off a small amount each year through depreciation. This means you can dramatically reduce your taxable income for 2025 by investing in the assets your business needs to succeed.
Recent legislation has made the Section 179 deduction more advantageous than ever for businesses. For the 2025 tax year, the maximum deduction you can write off has been significantly increased. This enhanced limit means a larger portion of your vehicle investments can be immediately expensed.
Alongside this, the phase-out threshold has also been raised, allowing more businesses to take full advantage of the deduction. Perhaps the most notable change is the return of 100 percent bonus depreciation, which can be used in conjunction with Section 179 for qualifying assets.
The key factor for vehicle deductions is the Gross Vehicle Weight Rating (GVWR). The great news is that many of the hard-working vehicles in our lineup qualify for these significant tax benefits.
For heavy-duty vehicles with a GVWR over 6,000 pounds, you may be able to deduct up to the full purchase price. This category includes powerhouse models like the Chevrolet Silverado 2500HD and 3500HD, the robust Silverado Chassis Cab models (4500HD and up), and the spacious Express Cargo and Passenger Vans.
Many other popular business vehicles also qualify for full expensing through a combination of Section 179 and bonus depreciation. This includes versatile models like the Chevrolet Silverado 1500, the commanding Suburban and Tahoe, and the capable Traverse.
To qualify for this year's deduction, you must purchase and place your new qualifying vehicle into service by December 31, 2025. The vehicle must be used for business purposes more than 50 percent of the time.
We always recommend consulting with your tax advisor or accountant to understand exactly how these rules apply to your specific business situation. They can provide personalized guidance to ensure you maximize your savings.
Don't let this opportunity to upgrade your fleet and save on your 2025 taxes pass you by. Our team at New Rochelle Chevrolet is here to help you find the best commercial vehicle that meets your needs and qualifies for these generous tax benefits.
Ready to drive your business forward? Explore our commercial inventory online or visit us to speak with our fleet specialists today.
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