Time left to qualify for 2026Deadline: December 31, 2026
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Write Off Your Next Vehicle in 2026
Buy a qualifying SUV for your business and take delivery by December 31, and you may be able to deduct the full purchase price on your 2026 taxes.1
Important: This page is general information, not tax, legal or financial advice. Eligibility and deduction amounts depend on your business and are not guaranteed. Please talk to your tax professional before you buy. See full disclosures
What Your Business Could Deduct
Which Vehicles Qualify?
How much you can deduct in the first year depends on the type and weight of the vehicle.
SUVs over 6,000 lbs GVWR
Up to 100% of the price in year one: the $32,000 Section 179 deduction plus bonus depreciation on the rest.3
Cars under 6,000 lbs
Up to $20,300 in year one, with the remaining cost deducted over the following years.3
Only vehicles delivered by December 31 count for 2026.4 In-stock new and pre-owned SUVs are usually the quickest way to make the deadline, subject to availability. Qualification depends on the specific vehicle's GVWR, so confirm it before you buy.3
Estimate Your First-Year Deduction
Move the sliders to see a rough estimate for your vehicle.
$100K$600K
51%100%
10%37%
Possible first-year deduction (estimate)5$300,000
Section 179$32,000
Bonus depreciation$268,000
Deducted in later years$0
Estimated federal tax savings5$111,000
Illustrative estimate only, not a quote or tax advice. Counts federal income tax only and leaves out state taxes, taxable income limits and your individual situation. Tax savings reduce taxes owed; they are not a discount on the vehicle price.
Hypothetical Example
A $350,000 Bentley Bentayga
The Bentayga's gross vehicle weight rating (GVWR) is over 6,000 lbs, so it counts as a heavy SUV. Combining Section 179 with bonus depreciation, a business could deduct the full price in the first year.
Purchase price$350,000
Section 179 deduction (SUV limit)$32,000
Bonus depreciation on remaining cost$318,000
Possible first-year deduction5$350,000
Hypothetical example for illustration only, not an actual vehicle price or offer. Assumes 100% business use, purchase and delivery in 2026, and enough taxable income to use the full deduction. Your results will vary.
Three Steps to Your Deduction
01
Purchase and Take Delivery
Buy or finance7 a qualifying new or pre-owned vehicle and start using it for your business before the end of the year.4
02
Take the Section 179 Deduction
For heavy SUVs, Section 179 lets you deduct up to $32,000 of the price right away.
03
Apply Bonus Depreciation
100% bonus depreciation can cover the remaining cost in the same year. It has no SUV limit.
What You Need to Qualify
- Purchased and delivered by December 31, 2026
- Used more than 50% for business
- New or pre-owned, as long as it's new to your business
- Purchased with cash or financing (leases generally don't qualify)
- Section 179 can't be more than your business's taxable income
- Deduction is based on your business-use percentage
FAQ
Frequently Asked Questions
Do pre-owned vehicles qualify?
Yes. Pre-owned vehicles can qualify for Section 179 and bonus depreciation as long as the vehicle is new to your business.
Can I finance the vehicle and still take the deduction?
Yes. The deduction is based on the cost of the vehicle, not the amount paid on the loan, so a financed vehicle can qualify for the full deduction in the year it's delivered.
Can I lease the vehicle instead?
Generally, a lease doesn't qualify for Section 179 because the leasing company owns the vehicle, not your business. Lease payments may be deductible in other ways. If the deduction is your goal, ask us about purchasing or financing instead.
What if I order a vehicle in 2026 and it arrives in 2027?
To count for the 2026 tax year, the vehicle must be purchased and delivered in 2026. A vehicle delivered and first used in 2027 would apply to the 2027 tax year.
What happens if I use the vehicle personally later?
If business use drops to 50% or less in a later year, part of the deduction may have to be added back to your income (called recapture). Keeping a mileage log helps document business use.
What if my deduction is more than my business income?
The Section 179 portion can't be more than your business's taxable income, but the unused amount generally carries forward to future years. Bonus depreciation isn't limited by income.
What is the difference between Section 179 and bonus depreciation?
Section 179 is a deduction you choose to take, limited to $32,000 for heavy SUVs and $2,560,000 in total for 2026, phasing out once total purchases pass $4,090,000. Bonus depreciation has no dollar limit and covers the cost left over after Section 179. Many businesses use both.
How do I find out if a vehicle qualifies?
For SUVs, check the gross vehicle weight rating (GVWR) on the sticker inside the driver's door jamb. Our sales team can confirm it for any vehicle in our inventory.
Time left to qualify for 2026Deadline: December 31, 2026
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Talk to a Business Sales Specialist
Call 385-417-4412 or visit us at 1231 W South Jordan Pkwy, South Jordan, UT 84095.
Ask us for a purchase summary with your vehicle's GVWR to share with your accountant. Our team can help you choose a vehicle but can't give tax advice.
Important Tax Information
- Not tax advice. Salt Lake City Motorcars does not provide tax, legal or accounting advice. Nothing on this page guarantees that a vehicle or purchase will qualify for Section 179, bonus depreciation or any specific deduction. You and your tax professional are responsible for determining eligibility and deduction amounts.
- Business use and income. The vehicle must be used more than 50% for qualified business use, and the deduction is limited to the business-use percentage. The Section 179 deduction can't exceed your business's taxable income and begins to phase out once total qualifying purchases exceed $4,090,000 in 2026. If business use later drops to 50% or less, part of the deduction may have to be repaid (recapture).
- Vehicle type and weight. Heavy SUV figures apply to SUVs with a gross vehicle weight rating (GVWR) of 6,001 to 14,000 lbs. GVWR varies by model, trim and equipment, so confirm it on the label inside the driver's door of the specific vehicle. Passenger cars of 6,000 lbs or less are limited to $20,300 of first-year depreciation for 2026 when bonus depreciation applies. Leased vehicles generally do not qualify for Section 179.
- Deadline. For calendar-year taxpayers, the vehicle must be purchased and placed in service (delivered and used in your business) by December 31, 2026. Businesses with a fiscal tax year should confirm their deadline with their tax professional. The countdown on this page uses your device's local time. Delivery dates and inventory are not guaranteed, and all vehicles are subject to prior sale.
- Estimates and examples. The calculator and the Bentayga example are hypothetical illustrations, not quotes or offers. They consider federal income tax only and do not include state taxes, self-employment tax, taxable income limits, phase-outs or your individual tax situation. Tax savings reduce taxes owed and are not a discount on the vehicle price.
- Sources. 2026 figures are based on IRS Revenue Procedure 2025-32 (Section 179 limits), IRS Revenue Procedure 2026-15 (passenger vehicle depreciation limits) and the 100% bonus depreciation rules of the One Big Beautiful Bill Act, as in effect in October 2026. Tax laws and IRS guidance may change.
- Financing and images. Financing is subject to credit approval. Vehicle images are for illustration only; actual vehicles, colors and equipment may vary.
Information last reviewed October 2026.
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Salt Lake City Motorcars
1231 W South Jordan Pkwy
South Jordan, UT 84095
- Sales: 385-417-4412
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Rimac Salt Lake City
1231 W South Jordan Pkwy
South Jordan, UT 84095
- Sales: 385-323-8381
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Bentley Salt Lake City
1231 W SOUTH JORDAN PKWY
SOUTH JORDAN, UT 84095
- Sales: 385-244-4919
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Lamborghini Salt Lake City
1231 W SOUTH JORDAN PKWY
SOUTH JORDAN, UT 84095
- Sales: 385-220-8949
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