Section 179 Tax Deduction for Maserati Levante

IRS Section 179 and 168(k) Potential Tax Advantages

Business owners have the opportunity for their next Maserati purchase to be even more rewarding thanks to the potential benefits made possible by Sections 179 and 168(k) of the IRS tax code. In fact, choosing a new Maserati Levante instead of some other luxury vehicle can be a smart decision that provides plenty of advantages not only for you, but for your business as well.  But – there have been important changes to these tax deductions for the 2024 Tax Year, which we highlight below.

IRS Section 179 for 2024

Section 179 of the IRS tax code allows businesses to deduct the price of qualifying equipment, such as vehicles, purchased or financed during the tax year.  The Internal Revenue Service breaks down the list of vehicles that qualify for Section 179 deduction into three primary groups: Light, Heavy, and Other.

The Maserati Levante falls into the “Heavy” category – which is defined as vehicles with a GVWR (gross vehicle weight rating) over 6,000 pounds, but not more than 14,000 pounds. For 2024, Section 179 allows for a maximum depreciation of $30,500 for “Heavy” vehicles in the current tax year, provided the vehicle is bought and put into service before January 1, 2025 and also meets certain other conditions:

• 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”

Additionally, Section 168(k) allows for additional “Bonus Depreciation” amounting to 60% of the purchase price of the vehicle through the end of 2024, which when added to the $30,500 from Section 179, can deliver a dramatic first-year depreciation tax deduction for a Maserati Levante purchased in 2024.  But starting in 2025, the allowable bonus depreciation percentage will decrease to 40%, meaning this tax benefit will be less impactful next year.