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Home >> BMW Models that Qualify for Section 179 Tax Deduction

BMW MODELS THAT QUALIFY FOR SECTION 179 TAX DEDUCTION

BMW Luxury Vehicle Tax Advantage Savings - BMW of Barrington

TAX ADVANTAGES

There are BMW models such as the BMW X7, BMW X6, and BMW X5 that have a gross weight exceeding 6,000 pounds; they might be eligible for full depreciation during the first year of ownership. This is as long as the vehicle is used for business work. This means that purchasing the X7, X6, and X5 can potentially give you tax advantages compared to buying SUVs that are under 6,000 pounds.

TAX DEPRECIATION COMPARISON

Let us look at the comparison of tax depreciation advantages for a business owner who decides to buy a BMW X7, X6, and X5 before the first of the new year. It is a good idea to talk to your tax expert to make sure that this information can be applied to your business.

BMW X7

BMW X7
BMW X71 100% Depreciation $92,600 VS Luxury Car2 21% Depreciation $19,200

For this model, your business can deduct 100% of the cost of BMW X7. However, your business cannot deduct a 27% 1st year deduction for the luxury sedan because the amount is capped at $19,200, which is the minimum you can claim.

View New X7 Inventory
BMW X6

BMW X5
BMW X51 100% Depreciation $66,750 VS Luxury Car2 24.5% Depreciation $19,200

For this model, your business can deduct 100% of the cost of BMW X6. However, your business cannot deduct a 27% 1st year deduction for the luxury sedan because the amount is capped at $19,200, which is the minimum you can claim.

View New X6 Inventory
BMW X5

BMW X5
BMW X51 100% Depreciation $66,750 VS Luxury Car2 28.5% Depreciation $19,200
View New X5 Inventory

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, 2023.

Luxury car depreciation can continue year two at $18,000, year three at $10,800, and subsequent years at $6,460 until the vehicle is fully depreciated or sold.

With Gross Vehicle Weight Ratings (GVWR) of more than 6,000 pounds, these BMW 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.

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, 2023.

BMW of Barrington 42.1292618, -88.134824.