Lincoln Vehicles that Qualify for Section 179 Deduction
Business owners have the opportunity to make their next new vehicle purchase even more rewarding thanks to the potential benefits made possible by Section 179 of the IRS tax code. In fact, choosing a new Lincoln model instead of another luxury vehicle can be a smart decision that provides plenty of advantages for your business.
Section 179 Deduction Explained
**REMINDER: If you have any questions, be sure to contact your tax professional for exact recommendations and rules related to Section 179 and vehicle eligibility.**
Section 179 of the IRS tax code allows businesses to deduct the price of qualifying equipment, such as vehicles, purchased or financed during the tax year.
Vehicles with a GVWR (gross vehicle weight rating) over 6,000 pounds, but not more than 14,000 pounds, allows for 100% depreciation in the current tax year, provided the vehicle is bought and put into service before January 1, 2024 and also meets other conditions:
- The vehicle can be either new or used; however, it must be purchased in an “arm’s-length” transaction that has been financed with qualified loans and leases and the title of the vehicle must be in the company’s name and not in the name of the company owner.
- At least 50% of the time, the vehicle should be used for business purposes and if the vehicle is not used completely for business purposes, 100% of the time, then there is a reduction of depreciation limits by the corresponding percentage of personal usage.
- You can claim the Section 179 deduction only in the tax year in which the vehicle has been put into service i.e. when the vehicle is ready and available, although you are not using the vehicle.
- Also, a vehicle that has been used for personal purposes first does not qualify for the Section 179 deduction if its purpose is changed to business use in a later year.
- Note: Individual tax situations may vary. Please consult your tax advisor for complete details on rules applicable to your business.
Lincoln Vehicles Eligible for Section 179 Deduction
Lincoln SUVs have a coveted reputation for delivering impeccable quality, first-class comfort, and capable performance in comparison to rival brands. The following Lincoln models currently qualify for Section 179 deduction.
- Lincoln Navigator (2WD and 4WD)
- Lincoln Navigator L (2WD and 4WD)
- Lincoln Aviator (RWD and AWD)
**As always, if you have any questions, please consult your tax professional for exact rules regarding Section 179 and vehicle eligibility.**
Example |
2023 Tax Year |
|
|---|---|---|
| Section 179 Overall Limit | $1,050,000 | |
| Section 168(k) Bonus Depreciation | 80% | |
| Qualifying Vehicles | New & Used | |
Example Vehicle |
Lincoln Navigator |
Other Luxury Sedan |
| Sales Price | $79,400 | $79,400 |
| First Year Depreciation | 100%
$79,400 |
Capped at $20,200 |
| Total Depreciation | $79,400 | $20,200 |
Additional Depreciation Under Section 179 for Qualifying Vehicles |
$59,200 | - |
Individual tax situations may vary. The information presented was accurate at time of publishing. Federal rules and tax guidelines are subject to change. Consult your tax advisor for complete details on rules applicable to your business.
*Comparisons based on Section 179 and 168(k) of the Internal Revenue Code, which allows for additional first year depreciation for eligible vehicles and reflects figures for owners who purchase vehicles for 100 percent business use and place vehicles in service by January 1, 2024.
**With Gross Vehicle Weight Ratings (GVWR) of more than 6,000 pounds, these Lincoln models are classified as “heavy SUVs.” Gross Vehicle Weight Rating (GVWR) is the manufacturer’s rating of the vehicle’s maximum weight when fully loaded with people and cargo.