Levante Section 179 Qualification

Have your purchased a Levante for your business?

Section 179 of IRS tax code allows businesses to deduct the price of qualifying equipment, such as vehicles, purchased or financed during the tax year.

Vehicles with a GVW (gross vehicle weight) rating of over 6,000 lbs, but not more than 14,000 lbs, qualify for a deduction of up to $25,000 if the vehicle is bought and put into service before December 31 and meets other conditions.

Levante eligibility

Levante, Levante S: 6,116 lbs
Levante GTS, Levante Trofeo: 6,226 lbs

What are the details?

  • The vehicle can be either new or used; however, it must be purchased in an "arm's-length" transaction that has been financed with qualified loans and leases and the title of the vehicle must be in the company's name and not in the name of the company owner.

  • At least for 50% of the time, the vehicle should be used for business purposes and if the vehicle is not used completely for business purposes, 100% of the time, then there is a reduction of depreciation limits by the corresponding percentage of personal usage.

  • You can claim the Section 179 deduction only in the tax year in which that the vehicle has been put into service i.e. when the vehicle is ready and available, although you are not using the vehicle.

  • Also, a vehicle that has been used for personal purposes first does not qualify for the Section 179 deduction if its purpose is changed to business use in a later year.

Individual tax situations may vary. Please advise the customer to consult their tax advisor for complete details on rules applicable to their business.