Could a New Mercedes-Benz Help Your Business This Year?

If you are a business owner considering a new vehicle, the end of the year may be a good time to explore your options.

Certain vehicles purchased and used for qualified business purposes may be eligible for Section 179 deductions and other depreciation benefits. Depending on the vehicle, business-use percentage, purchase date, and your individual tax situation, these deductions may help reduce your taxable business income.

At Mercedes-Benz of Milwaukee North, we are here to help you find the right vehicle for your business and provide the necessary information you need to discuss potential tax benefits with your tax professional.

What Is Section 179?

Section 179 is a federal tax provision that may allow qualifying businesses to deduct the cost of certain business-use property, including eligible vehicles, during the year the property is placed in service.

Instead of necessarily depreciating the entire cost of a qualifying vehicle over multiple years, a business may be able to deduct some or all of the eligible amount in the year the vehicle is placed in service, subject to applicable IRS rules and limitations.

What does that mean for a business owner?

If you already need a vehicle for your business, potential tax treatment may make purchasing before the end of the tax year worth discussing with your CPA or tax advisor.

Important Note: A tax deduction is not the same as receiving that amount of money back. Your actual tax savings depend on factors including your tax rate, business income, vehicle eligibility, business-use percentage, and other applicable tax rules.

Which Mercedes-Benz Vehicles May Be Worth Exploring?

Mercedes-Benz offers a wide range of SUVs, sedans, and vans that may be useful for business owners. Vehicles with a Manufacturer’s Gross Vehicle Weight Rating (GVWR) above 6,000 pounds may be subject to different depreciation rules and limitations, depending on the vehicle and how it is used. Generally, business use must exceed 50% for the most favorable Section 179 treatment.

Mercedes-Benz Models Exceeding 6,000 lbs. GVWR

SUVs

GLE SUV: All Models
GLE Coupe: All Models
GLS SUV: All Models
G-Class: All Models
EQE SUV: All Models
EQS SUV: All Models
GLC SUV: Mercedes-AMG® GLC 63 S E Performance, GLC 350 e 4MATIC®.
GLC Coupe: Mercedes-AMG® GLC 63 S E Performance.

Sedans & Wagons

S-Class: All Models
EQE Sedan: All Models
EQS Sedan: All Models
E-Class: Mercedes-AMG® E 53 Hybrid Sedan, Mercedes-AMG® E 53 Hybrid Wagon.
Mercedes-AMG® GT 4-Door Coupe: Mercedes-AMG® GT 63 S E Performance.

Vans & Other Business Vehicles

Mercedes-Benz Vans: Ideal for businesses needing space for tools, equipment, supplies, or deliveries.

Note: Eligibility, deduction amounts, and limitations vary by vehicle and business use.

Is a Business Vehicle Right for You?

Do you use a vehicle for your business?

How much of the vehicle’s use will be for qualified business purposes? (Business use generally must exceed 50%)

Do you need a new vehicle this year?

Will the vehicle be used to transport employees, clients, equipment, or supplies?

Are you considering an SUV, sedan, or van for your business?

Have you talked with your CPA about potential Section 179 or depreciation benefits?

Planning a Year-End Business Vehicle Purchase?

A vehicle generally needs to be placed in service during the applicable tax year to potentially qualify for that year’s depreciation or Section 179 treatment. Don’t wait until the last minute.

4 Steps to Get Started:

Find the Right Vehicle

Explore Mercedes-Benz SUVs, sedans, and vans that fit your business needs.

Get the Vehicle Information

Our team will provide essential details such as the vehicle’s purchase price, VIN, and GVWR.

Talk with Your CPA

Provide your tax professional with the vehicle information to discuss how Section 179 and depreciation rules apply to your specific situation.

Make an Informed Decision

Once your tax professional confirms potential benefits, our sales team will help you complete your purchase.

Why Shop Mercedes-Benz of Milwaukee North?

Whether you need a vehicle for client meetings, daily business travel, transporting equipment, or supporting your growing business, our team can help you find a Mercedes-Benz that fits your needs.

Our goal is simple: help you find the right vehicle and give you the information you need to make an informed business purchase.

View New Mercedes-Benz Inventory

Frequently Asked Questions About Business Vehicle Tax Deductions

Does the Mercedes-Benz GLE qualify for Section 179?

Most GLE SUV and GLE Coupe models have a GVWR over 6,000 lbs, which may qualify them for the heavier-vehicle deduction limits. Confirm the exact figure on your vehicle’s door-jamb label.

Can a Mercedes-Benz van qualify for Section 179?

Mercedes-Benz vans are commonly used for qualifying business purposes. Ask our team for GVWR and configuration details on the specific van you’re considering.

Important Tax Disclaimer

The information on this page is provided for general informational and marketing purposes only and should not be considered tax, accounting, or legal advice. Section 179 and depreciation rules are subject to eligibility requirements, limitations, and changes in federal and state tax law. Tax treatment varies based on individual circumstances, including business structure, taxable income, vehicle type, vehicle use, and other factors.

Mercedes-Benz of Milwaukee North does not provide tax, accounting, or legal advice. Please consult your qualified tax professional or CPA regarding your specific situation before making a vehicle purchase based on potential tax benefits. A tax deduction does not mean that a vehicle is free or that the purchase price will be refunded. Actual tax savings depend on your individual tax situation. Dealers independently verify GVWR.

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