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Maximize Your Business Tax Savings with the Section 179 Deduction
If you’re a California business owner looking to make the most of your year-end tax strategy, Section 179 of the IRS tax code allows you to deduct the cost of qualifying business vehicles purchased and placed in service during the tax year. This means you could potentially write off a large portion—or even the full purchase price—of eligible Toyota vehicles used primarily for business.
California Section 179 Highlights
Before claiming your deduction, it’s important to know that California’s Section 179 rules differ from the federal guidelines. According to the California Franchise Tax Board (FTB):
- California’s maximum Section 179 expense deduction is $25,000.
- The deduction begins to phase out once total qualifying property placed in service exceeds $200,000.
- The deduction cannot exceed your business income for the year.
- Certain property types, such as “off-the-shelf computer software,” are not eligible under California’s version of Section 179
- Once the election is made, it cannot be revoked without FTB consent.
Always consult your tax professional to confirm your eligibility and ensure compliance with both federal and California tax laws
Which Toyota Models May Qualify?
Many vehicles available at Northridge Toyota meet the weight and business-use requirements for Section 179 eligibility, including:
- • Toyota Tundra
- • Toyota Tacoma
- • Toyota 4Runner
- • Toyota RAV4
- • Toyota Highlander
- • Toyota Land Cruiser
- • Toyota Sequoia
