DON’T MISS OUT: Save Big on New & Used Commercial Vehicles With the 2023 Section 179 Deduction!

As 2023 winds down, it’s time to gear up your business or fleet for a successful year ahead. If this involves purchasing a new or used commercial vehicle to empower your team and enhance customer service, then you need to know about the Section 179 deduction within the Internal Revenue Code. Keep reading to learn how you can save big on a new or used commercial vehicle. 

Disclaimer: We are truck experts, but in order to learn how to take full advantage of the Section 179 deduction, please contact your tax professional.

Unpacking the Section 179 Deduction

Breaking down the tax code can be a daunting task, so we’re going to start by explaining what the Section 179 deduction is and how it can help you. The Section 179 deduction allows eligible business owners to write off up to $1,160,000 for any new or used trucks and trailers purchased, financed, or leased AND put into service in 2023. Each business also has a limit on the total amount of equipment purchased that caps out at $2,890,000. Once this threshold is reached, the deduction will begin to phase out on a dollar-for-dollar basis. Once $4,050,000 is spent, the deduction will go away according to Section179.org.

In comparison to 2022, this year’s deduction is $80,000 higher.

For 2023, the government is also offering a bonus depreciation of 80% for both new and used equipment. Large businesses planning to go over the spending cap will find this depreciation helpful. 

However, it is important that interested business owners act quickly because this deduction is only available through December 31, 2023. Waiting until January 1, 2024, would mean missing out on these savings.

Section179.org does a great job of breaking down the specifics of this deduction. One thing they want to make sure people understand is that there are variables that impact deduction amounts. These include:

Vehicle type

Vehicle weight 

Build and intent of vehicle 

Percentage of time used for business purposes 

The site also has a calculator you can use to estimate your deduction. Keep in mind that this is an estimate. Section179.org recommends contacting a tax expert or accountant with any questions you may have. 

Selecting Your Ideal Vehicle

Now that you’ve gained a grasp of Section 179, the next step is choosing your new or used vehicle for your business. At Lee-Smith, we offer a variety of options, including semi-trucks, pickup trucks, reefers, and transit vans. We are the Southeast’s largest locally owned commercial truck dealer for International®, Ford, and Isuzu Trucks. Currently, we have a great selection of used vehicles on our lot ready for purchase. We also have both diesel and electric models available. Our knowledgeable sales team can help you find the right vehicle to meet your business’ needs and budget. Explore our current inventory by clicking here. You can also call us at 423-622-4161 or swing by our dealership at 2600 8th Avenue in Chattanooga to speak with a member of our team.

We’re Here to Serve You

Building relationships with our customers is very important to us. Our commitment to you extends far beyond the sale of your vehicle. We have an inventory of over $4,000,000 in parts at your disposal. With our Internet Parts Sales service, you can shop for the parts you need from anywhere in the world! Recently, we also opened a Fleetrite Parts Store within our Chattanooga dealership. This exciting new specialty store allows us to expand our Fleetrite offerings. 

When it comes to service, our team is here to provide you with more than just repairs – we’re here to minimize your downtime. Earlier this year, we introduced our Mobile Service Division. This team of highly skilled service professionals will come to you to make repairs. This service saves you time and the hassle of having to bring your vehicle to us for service. 

One Last Word

We don’t want you to miss out on the 2023 Section 179 deduction. Please give us a call at 423-622-4161 if you have any questions or for more information. We can’t wait to help you choose the right vehicle for your business. Thank you for trusting us!