Does Jeep Wrangler Qualify For Section 179? (Explained)

Section 179 of the IRS tax code has been existing since 1958.

This tax code allows taxpayers to exempt the costs of some properties acquired in the taxed year it was bought in as an expense once it’s in service. 

Due to this, people and small businesses are always cautious about section 179 eligibility when acquiring new properties.

The Jeep Wrangler is probably on your list of potential expenses if you’re reading this. Does it qualify for section 179?

The Jeep Wrangler is one of the vehicles eligible for the section 179 tax rule. The majority of Jeep’s vehicles are eligible for this tax benefit, and the Wrangler is one of them. In addition, Jeep states that you can have up to 100 percent of the total purchase price of Wrangler trims like the Rubicon and other 4xe models.

Do Jeep Wranglers Qualify For Section 179?

The Jeep Wrangler qualifies for section 179. There has never been a better time to buy a Jeep vehicle than 2022, especially if you’re a business owner.

Jeep has made several additions and improvements to its tax incentives for business owners, and one of these is the expansion of section 179 eligibility.

Under the US tax rules, the Jeep Wrangler can be put down as a deductible expense when filing taxes. 

So yeah, if you’re a little business trying to put things together, you should consider the Wrangler a good option.

There’s so much I find enticing about Jeep Wrangler, and with its inclusion in the Section 179 eligibility, I consider it the perfect taxpayer’s business vehicle.

Recent Wrangler trims like the Rubicon and other 4XE models have seen significant growth over the past two years.

According to research, some of this growth should be attributed to section 179 eligibility.

The incentives you gain from purchasing a Wrangler do not stop here, but I limit my focus to this article’s exciting section 179 eligibility.

Without a doubt, the Jeep Wrangler is the perfect taxpayer’s business vehicle.

What Is Section 179?

Section 179 of the IRS( Internal Revenue Code) is a taxation code designed to help business owners.

With this code or rule, small businesses can deduct the expenses incurred on purchases of business equipment considered “depreciable.”

Without the Section 179 revenue code, businesses will have no choice but to capitalize and depreciate the equipment, capital good, or assets over a certain amount of years. 

Unfortunately, this tax benefit doesn’t apply to every asset you can acquire.

You only stand to gain from the section179 Revenue code if the asset or equipment acquired is purchased in the year of taxation with verifiable records to show this.

The entire monetary cost of the purchase is eligible for deduction.

Section 179 of the IRS( Internal Revenue Code) still has other limits. For example, the maximum deduction applied to your yearly taxes with this rule is $1,050,00.

Also, the maximum value of an asset you can purchase with this code in mind is $2,620,000.

Taxes have to be the worst part about being a recognized citizen.

It even gets harder to deal with when you’re a little business just starting up, requiring you to spend huge sums of money to acquire capital goods.

This situation can be quite draining and discouraging to small or potential business owners without supportive clauses. 

With the section 179 code, the cost of an asset can be noted as an immediate expense deduction, which will give small business owners some breathing space when dealing with the tax burden.

But unfortunately, only expenses on assets like cars, machines for business, computers, and other items you can regard as the stuff you’ll need when setting up a business or company fall under the 179 code. 

All you need to do is ensure that whatever you’re purchasing is below the maximum cost because there are few types of equipment out there needed for a company or business’ startup that exceeds $2,620,000.

Why Would You Take The Section 179 Instead Of Bonus Depreciation?

Bonus depreciation and Section 179 of the IRS( Internal Revenue Code) aim to reduce the tax burden and encourage small businesses.

There are many positives to both of them, and that’s why it can be hard for you to pick the right one for that asset you plan on getting, or you recently got. 

Therefore, to help you make the best choice with your financial future in mind, I’ll be covering the differences between bonus depreciation and the section 179 clauses.

After this, you may see why you should go with the 179 instead of the bonus depreciation. So, let’s get to it!

One of the biggest differences between Bonus Depreciation and Section 179 of the IRS is that the earlier deals with percentages while the latter deals with a set dollar cost or amount. 

Before 2020, bonus depreciation could cover just 50 percent of an asset’s cost, but in 2022, it covers 100 percent!

Yes, 100 percent. Section 179, on the other hand, has a fixed amount on your yearly taxes that you can deduct when filling up your taxes at the end of the year.

This method probably swings things in favor of bonus depreciation so far, but keep reading.

Section 179 gives you better flexibility than bonus depreciation.

For example, with Section 179, you can choose which of your assets purchased that year for deduction and the expenses you’d prefer to go down as a future tax break. 

You can also divide the maximum deduction amount provided by the 179 within multiple purchases. Bonus Depreciation doesn’t offer you such flexibility.

With 179, you get to pick the year you’ll eventually get to clear off the taxes, unlike bonus depreciation which will have you taxed in bits from the following year. 

As of now, bonus depreciation must apply to the entire cost of an asset, giving you zero flexibility when choosing how much of your cost you want to be taxed or want to deduct. Jeep Wrangler Oil Life Percentage? (Things You Must Know).

Again, why would you take section 179 over the bonus depreciation? Well, every reason mentioned above.

Section 179 offers much greater flexibility in handling your taxes, so it’s better. 

How Many Pounds Is A Jeep Wrangler?

The Wrangler’s weight differs from trim to trim. So I’ve compiled a list of all trims of Jeep’s famous wrangler and their respective weights. Here they are:

• Jeep Wrangler Unlimited Rubicon weighs 4,439 lbs.
• Jeep Wrangler Sport weighs 3,970 lbs.
• Jeep Wrangler Unlimited Moab weights 4,345 lbs.
• Jeep Wrangler Unlimited Sport S weights 4,201lbs.
• Jeep Wrangler Unlimited Sport weights 4,201 lbs.
• Jeep Wrangler Unlimited Sahara weighs 4,431 lbs.

Conclusion

If you find paying taxes as stressful as I do, you will probably be a big fan of the section 179 code.

We’ll still eventually have to deal with the numbers, but we’ll get some burden taken off our shoulders, especially if you’re a small business owners.

Having read this, you should be motivated to get a Wrangler since it is cost-efficient under the section 179 code. Can A Jeep Wrangler HardTop Go Through A Carwash?