Section 179 lets you expense part (or all) of a business vehicle’s cost in the year you place it in service instead of depreciating it over several years.

Step 1: Confirm the vehicle qualifies

Section 179 applies

  • only if business use is over 50%.
  • For 2026, heavy SUVs, pickups, and vans with GVWR 6,001 to 14,000 lbs can take up to $32,000 of Section 179 expense; work trucks and vehicles over 14,000 lbs (and other equipment) fall under the general Section 179 limit, which the 2025 tax law raised to $2,560,000 for 2026 (phasing out once total equipment purchases exceed $4,090,000).

Step 2: Buy and place it in service

  • Pay for the vehicle and start using it for business during the same tax year.
  • Keep the bill of sale, financing docs, and the date you first used it for work.

Step 3: Track miles & give us the paperwork

  • Maintain the same mileage log you’d use for any auto deduction to prove business use %.
  • At year end, send us the purchase docs and mileage summary; we’ll elect Section 179 on Form 4562 and apply bonus depreciation if it makes sense.

2026 Tax Benefit in Plain English

  • Immediate write-off: up to $32,000 for a heavy SUV (2026 limit), or more for larger work vehicles, can come straight off taxable business income in year one.
  • Bonus depreciation stack: after the Section 179 amount, 100% bonus depreciation can apply to the remaining business-use basis. The 100% rate is now permanent for vehicles and equipment acquired after January 19, 2025.
  • Cash flow boost: Expensing in year one accelerates the deduction instead of spreading it over five years.

(Remember: the vehicle must stay above 50% business use for its full depreciation life, usually six tax years. If it drops below 50% in any of those years, part of the earlier deduction is added back to your income that year.)

Please note that the Section 179 is limited to business income and so you will not be able to use Section 179 to create a loss and/or increase an existing loss. It is worth noting, however, that no such limitation exists for bonus depreciation and so you may be able to utilize bonus depreciation to create a loss or increase an existing loss.