Information About Section 179 and Its Benefits

What is the Section 179 Deduction?

Section 179 is an IRS tax code that allows businesses to deduct the full purchase price of qualifying equipment finance during the tax year. If you buy or lease qualifying equipment, you can deduct the total purchase price from your gross income. The U.S. government created this incentive to encourage small to medium businesses to invest in themselves.

At one time, Section 179 was referred to as the "SUV Tax Loophole" or the "Hummer Deduction." However, while that particular benefit has been reduced, you could still potentially save thousands by using this incentive to purchase business-use vehicles.

How Does Section 179 Work?

When businesses used Section 179 in the past for qualifying equipment, they would pay off a little of it at a time through depreciation. For example, if your company spent $50,000 on a vehicle, then you would write off about $10,000 a year for five years.

Now, Section 179 allows you to write off the entire purchase price of qualifying equipment for the current tax year. Small businesses can write off the entire cost of qualifying equipment for their 2019 tax return for up to $1,000,000.

Who Qualifies for Section 179?

All businesses that purchase, finance, and lease new or used business equipment during the tax year of 2019 should qualify for Section 179 Deduction. Since this IRS code is meant for small businesses, they only businesses that may not be eligible are those that spend more than $3,500,000.

What's the Difference between Section 179 and Bonus Depreciation?

Bonus Depreciation is offered less consistently than Section 179, changing from year to year. The most significant difference is that Section 179 offered the most savings before a business spends $2,500,000 on new equipment while Bonus Depreciation is useful for large purchases over that amount. When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation.

* Each individual's tax situation is unique; therefore, please consult your tax professional to confirm vehicle depreciation deduction and tax benefits. For more details, visit The deductions referenced are for information purposes only. This information does not constitute tax or legal advice. All persons considering use of available deductions should consult with their own tax or legal professional to determine eligibility, specific amount of deductions available, if any, and further details. The deductions are not within Nissan's control and are subject to change without notice. Interested parties should confirm the accuracy of the information before relying on it to make a purchase. ** The tax incentives are available for depreciable tangible property that is acquired by purchase for use in the active conduct of a trade or business.

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Tynan's Nissan Aurora

780 South Havana St
Directions Aurora, CO 80012

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