Understanding the Section 179 Deduction
What Is the Section 179 Deduction?
Section 179 of the U.S. tax code allows businesses to deduct the cost of qualifying business property — including certain vehicles — in the year the property is placed into service instead of depreciating the cost over several years. This immediate expensing helps businesses reduce taxable income and improve cash flow in the purchase year.How Section 179 Works
- Purchase or finance a qualifying vehicle and place it into service for business use during the tax year.
- Ensure the vehicle is used at least 50% for business (see “Percentage Requirement” below).
- Claim the deduction up to the IRS limits (subject to business income and other caps).
Limits to the Deduction
Important limits (current as of the most recent guidance — always confirm with your tax advisor):- The total Section 179 deduction limit is subject to annual IRS updates and phase-outs based on total qualifying purchases.
- The deduction cannot exceed your taxable business income for the year.
- Luxury passenger vehicles have statutory caps; SUVs and trucks with a GVWR over 6,000 lbs often qualify for more favorable treatment.
- Timing matters — the vehicle must be placed in service within the tax year you claim.
Who Qualifies and the Qualifications
Businesses of all types (sole proprietors, partnerships, S-corps, C-corps, LLCs) may qualify provided:- The vehicle is used for business more than 50% of the time.
- The vehicle is purchased (or financed) and placed into service during the tax year.
- The business has sufficient taxable income to absorb the deduction — excess deduction amounts may be carried over in some cases.
- Documentation is kept showing business vs. personal mileage and the date the vehicle was placed in service.
Eligible INFINITI Vehicles
Not every vehicle or trim will qualify the same way; eligibility often depends on Gross Vehicle Weight Rating (GVWR) and actual business use. Common INFINITI models businesses consider:- INFINITI QX80 — Many configurations exceed a 6,000 lb GVWR and therefore may qualify for more favorable Section 179 treatment when used primarily for business.
- INFINITI QX60 — May qualify for partial deductions depending on GVWR and business-use percentage.
- INFINITI QX50 / QX55 — Typically treated as passenger vehicles; may qualify for pro-rated depreciation or limited Section 179 benefits depending on use and caps.
Business-Use Percentage: How Much Do You Need to Use the Vehicle?
The vehicle must be used at least 50% for business purposes to claim Section 179. The deductible amount equals the qualifying cost multiplied by the business-use percentage. Example: If a QX80 is used 70% for business, you can claim 70% of the allowable Section 179 deduction for that vehicle (subject to IRS caps and taxable income limits).Documentation & Best Practices
- Keep a mileage log showing business vs. personal miles (digital logs are acceptable).
- Retain purchase, finance, and in-service date records.
- Work with a licensed tax professional before claiming Section 179 — rules change and interpretation can vary by situation.
- Coordinate timing of purchase and placing the vehicle into service to align with year-end tax planning.
Why Work with INFINITI of Beachwood?
INFINITI of Beachwood assists business customers by identifying models and trims that maximize eligibility, documenting vehicle specs (GVWR, VIN, purchase date), and coordinating with your accountant or tax advisor to help ensure paperwork is in order. We support Cleveland-area business buyers who want luxury vehicles that also make smart tax sense. Learn more about local business benefits from the Cleveland.com Business Directory and local resources at the Beachwood Chamber of Commerce.
Ready to explore eligible INFINITI models for your business?
View Eligible INFINITI Models • Apply for Business Financing • Contact INFINITI of Beachwood
INFINITI of Beachwood • 25900 Central Parkway, Beachwood, OH 44122 • 216-475-4800