Does Honda Odyssey Qualify For Section 179? (Let’s See)

Are you looking for a vehicle with which you could benefit from the section 179 tax rule? You may already own a Honda Odyssey and wonder if you qualify for section 179.

Besides that, you may know from our post if Honda Ridgeline Qualifies for Section 179?

I would show you why your car qualifies for this tax deduction and what it entails from start to finish.

The Honda Odyssey qualifies for the section 179 tax rule. This qualification is based on several specifications of the Honda Odyssey. The Honda Odyssey possesses a gross vehicle weight above 6000 pounds. The gross weight is an essential requirement for a vehicle to qualify for section 179. Other factors that make your Honda Odyssey eligible for full section deduction include The space within the van, a 158 cubic feet cargo space, and removable second-row seats.

What is section 179?

Section 179 is a code used to refer to a section of tax laws enforced by the internal revenue service in the United States of America.

This code allows you to make an immediate expense deduction when purchasing and using certain goods.

These goods include every form of a depreciable item used for business and services within a particular period.

Some depreciable goods considered under section 179 include cars, office equipment, business machinery, etc.

This law allows businesses to write off the total purchase price of your Honda Odyssey in the year you purchased it.

When you buy your Honda Odyssey, you will be able to have a full section deduction on the purchase price on your income tax return.

For example, take the cost of your Honda Odyssey at the point of purchase. This cost can be taken as an immediate expense deduction and allows you to get an immediate break on your tax burden.

Instead of making minor deductions for an extended time as the vehicle depreciates, you make payment at once.

This kind of immediate deduction on purchased vehicles can provide tax relief for business owners purchasing start-up equipment or for continuous business use.

For instance, if an item costs 50,000 dollars the purchase.

However, the bonus depreciation deduction would require that the equipment depreciates at 10 percent of its value each year.

Whereas section 179 allows you to write off all the amount in a single year. 

The section 179 method is quite different from the system known in the bonus depreciation section of the internal revenue law.

This portion of the law allows you to make a percentage deduction, while section 179 will enable you to make actual deductions in dollars.

This point is the fundamental difference between both systems, though a business owner can combine them for their benefit.

How Can Someone Benefit From Section 179?

Section 179 presents enormous benefits for small businesses. For example, you can deduct the total value of specific business equipment purchased in the same tax year as a small business owner.

This arrangement drastically reduces the pain of deducting the amount in portions year after year as the good depreciates.

To benefit from this tax law, you must do the following:

• Make sure the asset is eligible
• Start using the asset
• Claim the deduction

#1. Make Sure the Asset Is Eligible

Not every item purchased is eligible for section 179; you must know what item qualifies for this rule. Generally, items that are eligible for section 179 are tangible items.

These items cut across a wide range of equipment such as super duty trucks, furniture, computer software, electronics, etc.

Another factor that makes the item eligible is that you must have purchased it. For example, a property that has been leased does not qualify for section 179.

Another factor determining its eligibility is that you must use it for more than 50 percent of your business.

Therefore, even though the asset is for personal use, let it be used at least 50 % of the time for business.

Lastly, a strict rule governing the eligibility of your item when it enrolls for section 179 is where and who it was acquired.

Section 179 does not cover goods and items obtained from related persons.

These relatives include siblings, spouses, parents, grandparents. 

#2. Start Using the Asset

To benefit from section 179, you have to start using the item. The incentive begins to take effect only from the time of use and not from the time of purchase.

Even when purchased and used for personal activities, that would not still count until the item serves business purposes.

#3. Claim The Deduction

You can then claim the deduction on a form that collates your details. This form can be seen in the first part of form 4562.

You will be required to include a description of the property, the cost price, and the amount of section 179 that you are eligible to claim.

The information required of you may vary depending on the item you are registering.

Does My Vehicle Qualify for Section 179 Deduction?

Yes, your Honda Odyssey qualifies for full section deduction. Though not a super-duty truck, the Honda Odyssey weighs more than 6000 pounds.

Therefore, whatever feature that potentiates your vehicle for business makes it qualify for section 179.

For the Honda Odyssey, a couple of features aside from the weight make it eligible for section 179. 

One of these features includes the cargo space that the Honda Odyssey has. For example, when one collapses the middle seats of the Honda odyssey, the cargo space available for use is up to 158 cubic feet.

This cargo space allows the haulage of goods, thereby qualifying the vehicle for section 179.

Items that qualify for section 179 belong to a price range. This price range ensures that the maximum cost of goods to be purchased should not exceed 1,050,000 dollars.

For example, your Honda Odyssey would cost you a maximum amount of 50,000 dollars. Thus, your Honda Odyssey qualifies for the section 179 deduction. 

What is the GVWR of a Honda Odyssey?

The Gross vehicle weight of a Honda Odyssey is precisely 6019 pounds. The gross vehicle weight rating is known as the maximum total safe weight of the Honda Odyssey.

It includes the weight when empty plus the passengers’ weight, the fuel, and any other cargo.

To locate the gross vehicle weight rating of your Honda Odyssey, check the drivers’ door hinges. You will find it at the point where the door links to the body of the vehicle.

The gross weight is vital because it tells whether your car qualifies for section 179 or not. Vehicles with a gross vehicle weight rating of 6000 pounds and above qualify for section 179. 

Conclusion

Your Honda Odyssey qualifies for section 179 deduction. The reason is that it has a gross vehicle weight rating of above 6000 pounds.

Other features that make the Honda Odyssey eligible for these tax policy includes a spacious interior and a sizeable cargo-carrying ability.

The cargo-carrying ability is essential, but another feature worth mentioning is the space within the interior.

To enroll in the scheme and enjoy its benefits,  you may have to register the vehicle and start using it.

In this way, the deductions can be made from the time of use and not of purchase.