Land Rover Section 179 Tax Advantage Overview

IRS Section 179 Guidelines for 2025

Section 179 of the IRS tax code enables businesses to take advantage of deductions for the purchase or financing of qualifying equipment, including vehicles, within the tax year. The Internal Revenue Service categorizes eligible vehicles for this deduction into three primary groups: Light, Heavy, and Other.

Many Land Rover SUVs fall into the "Heavy" vehicle category, which includes those with a Gross Vehicle Weight Rating (GVWR) exceeding 6,000 pounds but not surpassing 14,000 pounds. Notable models that meet this criterion include the Range Rover, Range Rover Sport, Range Rover Evoque, Range Rover Velar, Defender 90, Defender 110, Defender 130, and select trim levels of the Discovery, though GVWR may vary by model.

For the 2025 tax year, businesses can benefit from a maximum depreciation deduction of $31,300 for qualifying "Heavy" vehicles, provided they are purchased and placed into service before January 1, 2026, and fulfill specific IRS conditions. We encourage you to explore these opportunities to maximize your business's tax benefits while investing in reliable and durable vehicles..

  • 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 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 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.
  • Note: Individual tax situations may vary. Please consult your tax advisor for complete details on rules applicable to your business.


IRS Section 168(k) “Bonus Depreciation”

Moreover, Section 168(k) offers an opportunity for "Bonus Depreciation," equivalent to 60% of the purchase price for select models, including the Range Rover and Defender series, until the end of 2025. When combined with the $31,300 benefit from Section 179, this presents a remarkable potential for significant first-year depreciation tax deductions on certain luxury SUVs acquired in 2025.

 

Depreciation Example

"Heavy" Section 179

"Light" Section 179

2025 IRS Section 179 Maximum 1st Year Depreciation
Depreciation

$31,300

$12,400

Section 168(k) Bonus Depreciation

60% of Purchase Price

Capped at $8,000 for Luxury Vehicles

Qualifying Vehicles

New & Used

New & Used

Example Vehicle

Range Rover Sport

Competitor Luxury Sedan

Purchase Price

$90,525

$90,525

First Year Section 179 Maximum Depreciation

$31,300

$12,400

First Year Section 168(k) Bonus Depreciation

$54,315

Capped at $8,000

Total 1st Year Depreciation

$84,815

$20,400

Additional 1st Year Depreciation for "Heavy" Section 179
Vehicles

$64,415

-

 

 

 


Individual tax situations may vary. The information presented was accurate at time of publishing. Federal rules and tax guidelines are subject to change. Consult your tax advisor for complete details on rules applicable to your business.

**With Gross Vehicle Weight Ratings (GVWR) of more than 6,000 pounds, these select models are classified as "Heavy SUVs". Gross Vehicle Weight Rating (GVWR) is the manufacturer's rating of the vehicle's maximum weight when fully loaded with people and cargo.

**REMINDER: If you have any questions, be sure to contact your tax professional for exact recommendations and rules related to Section 179 and vehicle eligibility.**

Luxury car depreciation can continue year two at $19,800, year three at $11,900, and subsequent years at $7,160 until the vehicle is fully depreciated or sold.

*Comparisons based on Section 179 and 168(k) of the Internal Revenue Code, which allows for additional first year depreciation for eligible "Heavy" vehicles and reflects figures for owners who purchase vehicles for 100 percent business use and place vehicles in service by January 1, 2026.


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  1. Land Rover Lake Bluff

    375 Skokie Highway
    Lake Bluff, IL 60044

    • Sales: (847) 604-8100
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375 Skokie Highway
Directions Lake Bluff, IL 60044

  • Contact our Sales Department at: (847) 604-8100

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