Section 179 Tax Advantages
Business owners looking to get more value from their next acquisition should know about the potential Section 179 SUV tax deduction benefits offered under IRS Sections 179 and 168(k). Choosing a capable model like the Range Rover, Range Rover Sport, Range Rover Evoque, Range Rover Velar, Defender 90, Defender 110, Defender 130, or Discovery instead of a standard passenger car could lead to significant Land Rover Section 179 tax benefits for your company.
With specific updates for the current tax year explained below, the team at Land Rover Chantilly is ready to make your experience easy and professional. Whether you need a vehicle for operations in Northern Virginia or are exploring a luxury SUV tax write-off in Loudoun County, we are here to help you maximize your potential savings.
IRS Section 179 Guidelines for 2025
Section 179 of the IRS tax code may allow businesses to deduct the cost of qualifying equipment, such as vehicles, bought or financed during the tax year. This is widely considered a valuable business vehicle tax deduction for companies looking to reinvest in their fleet. The IRS sorts eligible vehicles into three main groups: Light, Heavy, and Other.
Several of our models fit into the "Heavy" category. This classification is key for a heavy SUV tax write-off, defined as vehicles with a GVWR (gross vehicle weight rating) over 6,000 pounds, but not more than 14,000 pounds. These models include the Range Rover, Range Rover Sport, Range Rover Evoque, Range Rover Velar, Defender 90, Defender 110, Defender 130, and Discovery (specific trim levels and GVWR may vary).
For the 2025 tax year, Section 179 may allow a maximum depreciation deduction of $31,300 for "Heavy" vehicles. To qualify for this Section 179 luxury SUV benefit, you must buy the vehicle and put it into service before January 1, 2026. You generally must also meet the following conditions:
The vehicle can be new or used. However, it must be purchased in an "arm's-length" transaction (a standard market transaction). It must be financed with qualified loans or leases, and the title must be in the company's name, not the business owner's name.
The vehicle must be used for business at least 50% of the time. If you do not use it for business 100% of the time, the deduction limit is reduced based on your personal use.
You may only claim the business vehicle tax deduction in the tax year the vehicle is "placed in service." This means it is ready and available for use, even if you haven't started using it yet.
A vehicle first used for personal driving generally cannot qualify for Section 179 later, even if you switch it to business use in a future year. Note: Individual tax situations vary. Please consult your tax advisor for full details on how these rules apply to your business.
IRS Section 168(k) "Bonus Depreciation"
In addition to standard deductions, Section 168(k) offers potential bonus depreciation SUV eligibility. This may allow you to deduct 60% of the purchase price on select Range Rover, Range Rover Sport, Range Rover Evoque, Range Rover Velar, Defender 90, Defender 110, Defender 130, or Discovery models through the end of 2025. When combined with the $31,300 limit from Section 179, this creates a compelling opportunity for businesses to secure a premium asset while optimizing their tax position for the year.
| Depreciation Example | "Heavy" Section 179 | "Light" Section 179 |
|---|---|---|
| 2025 IRS Section 179 Maximum 1st Year Depreciation | $31,300 | $12,200 |
| 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 | $85,615 | $20,400 |
| Additional 1st Year Depreciation for "Heavy" Vehicles | $65,615 | - |
Interpretation of Benefits
What this means is that a qualifying heavy luxury SUV may allow substantially greater first-year depreciation than a comparably priced luxury sedan, potentially improving cash flow while still delivering premium capability and presence.
Frequently Asked Questions
Do Range Rovers qualify for Section 179? Yes, many models may qualify. Specifically, Range Rover Section 179 eligibility generally applies to vehicles with a GVWR between 6,000 and 14,000 pounds. This often includes the Range Rover and Range Rover Sport, as well as the Defender Section 179 deduction for models like the Defender 90, 110, and 130.
How much can I write off with a luxury SUV? For the 2025 tax year, Section 179 may allow for a maximum depreciation of $31,300 for qualifying "Heavy" SUVs. Additionally, you may qualify for "Bonus Depreciation" under Section 168(k), which allows for a deduction of 60% of the purchase price on select models.
Can Section 179 apply to leased vehicles? Yes, Section 179 may apply to vehicles that are financed with qualified loans and leases, provided it is an "arm's-length" transaction and the title is in the company's name. What GVWR qualifies as a heavy SUV? The IRS defines the "Heavy" category for the heavy SUV tax write-off as vehicles with a Gross Vehicle Weight Rating (GVWR) over 6,000 pounds, but not more than 14,000 pounds.
Can used vehicles qualify for Section 179? Yes, the vehicle can be either new or used to potentially qualify for Section 179, as long as it is "new to you" and purchased in an arm's-length transaction.
Where can I find Land Rover Chantilly tax benefits? Our team serves the greater area, offering information on Northern Virginia Section 179 vehicle options to help local business owners make informed decisions.
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.