Section 179 Tax Advantage

If you're a business owner looking to maximize potential tax savings on a new Land Rover, consider the benefits available through IRS Sections 179 and 168(k). Choosing a luxury SUV like the Range Rover, Range Rover Sport, Defender 90, Defender 110, or Defender 130 may provide significant advantages for both you and your business.

Range Rover

Range Rover Sport

Defender 130 & 110

IRS SECTION 179 GUIDELINES FOR 2025

Section 179 of the IRS code allows businesses to deduct the cost of qualifying vehicles purchased or financed during the tax year. The IRS defines "Heavy SUVs" as those with a gross vehicle weight rating (GVWR) above 6,000 lbs and below 14,000 lbs.

Qualifying Land Rover models include:
Range Rover, Range Rover Sport, Defender 90, Defender 110, and Defender 130.

For 2025, the maximum first-year Section 179 deduction for heavy vehicles is $31,300, provided the vehicle is purchased and placed in service before January 1, 2026 and used primarily for business.

Key Guidelines:

Vehicle must be purchased or leased in an arm's-length transaction and titled in the company's name.
Must be used 50% or more for business; depreciation is reduced proportionally for mixed use.
Deduction can only be taken in the tax year the vehicle is placed in service.
Vehicles previously used personally must be converted to business use before eligibility.

Consult your tax professional for details on vehicle eligibility and current IRS limits.

Section 168(k) allows for Bonus Depreciation-up to 60% of the purchase price-on certain eligible vehicles purchased before the end of 2025. When combined with the $31,300 Section 179 deduction, this can deliver substantial first-year depreciation benefits for qualifying Land Rover SUVs.

Depreciation Comparison Table

Depreciation Example: Heavy vs. Light Duty

Depreciation Example	"Heavy" Section 179	"Light" Section 179
2025 IRS Section 179 Max 1st Year Deduction	$31,300	$12,400
Section 168(k) Bonus Depreciation	60% of Purchase Price	Capped at $8,000
Qualifying Vehicles	New & Used	New & Used
Example Vehicle	Range Rover Sport	Competitor Luxury Sedan
Purchase Price	$90,525	$90,525
1st Year Section 179 Depreciation	$31,300	$12,400
1st Year Bonus Depreciation	$54,315	Capped at $8,000
Total 1st Year Depreciation	$85,615	$20,400

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Information is provided for illustrative purposes only and does not constitute tax advice. Rules, limits, and eligibility are subject to change. Please consult your qualified tax advisor for complete details on IRS Section 179 and 168(k) requirements and vehicle eligibility.