To qualify for any Section 179 deduction, the vehicle must be used for business purposes more than 50% of the time .
The right choice depends on your cash flow needs and how long you plan to keep the vehicle. how to buy a car for a business
Full ownership, builds equity, no mileage limits, and unlocks the largest Section 179 deductions . Cons: Higher upfront costs and monthly payments . Leasing: To qualify for any Section 179 deduction, the
For 2026, bonus depreciation is scheduled at 20% after applying Section 179 limits, though some specific "heavy" vehicles may still qualify for 100% bonus depreciation under certain legislative rules . 2. Choose Your Acquisition Strategy: Buy vs. Lease Cons: Higher upfront costs and monthly payments
Standard passenger cars have lower caps. For 2026, the first-year limit is approximately $12,200 , plus an additional $8,000 if you apply bonus depreciation, for a total of $20,200 .