Business Tax Advantage

If you're a business owner looking to maximize your savings on a new Land Rover, consider the potential benefits made available by Sections 179 and 168(k) of the IRS tax code. Choosing a new vehicle like the Range Rover, Range Rover Sport, Range Rover Evoque, Range Rover Velar, Defender 90, Defender 110, Defender 130, or Discovery instead of a luxury sedan can be a smart decision that provides plenty of advantages not only for you but for your business as well. There have been a number of updates for the new tax year which we'll explain in greater detail below.If you're a business owner looking to maximize your savings on a new Land Rover, it's important to consider the potential benefits offered by Sections 179 and 168(k) of the IRS tax code. Opting for a new vehicle such as the Range Rover, Range Rover Sport, Range Rover Evoque, Range Rover Velar, Defender 90, Defender 110, Defender 130, or Discovery instead of a luxury sedan can be a smart decision. This choice can provide significant advantages for both you and your business. There have been several updates for the new tax year, which we will explain in more detail below.

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 pre-owned; however, it is essential that it be acquired through an "arm's-length" transaction. This purchase must be financed with qualified loans or leases, and the title must be registered in the company's name rather than that of the company owner.
• To qualify for tax deductions, it is important that the vehicle is utilized for business purposes at least 50% of the time. If it is not utilized exclusively for business, the depreciation limits will be adjusted to reflect the percentage of personal usage.
• The Section 179 deduction can only be claimed in the tax year that the vehicle is officially placed into service, meaning it is ready and available for use, even if it has not been utilized at that point. Additionally, please note that if a vehicle is initially used for personal purposes and is later designated for business use, it will not be eligible for the Section 179 deduction in subsequent years.
• It's important to remember that individual tax situations can differ significantly. We strongly recommend consulting with your tax advisor to ensure you fully understand the 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.