Section 179 Tax Deduction for BMW Vehicles


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Qualifying New BMW Vehicles Offer a Potential Tax Break for Long Beach Businesses

There are tax write-offs for Long Beach business owners who want a new BMW at their service. Section 179 of the Internal Revenue Code offers tax deductions on qualifying vehicles used for business purposes at least 50 percent of the time. The X5, X6, X7, XM, iX, 7 Series, and i7 are eligible BMW models if you're looking for a tax break on a luxury vehicle. BMW enthusiasts from Long Beach and Orange County can take advantage of these tax savings while growing their business. Exit the 405 to shop at Long Beach BMW, where smart business solutions await you. Choose a model eligible for a tax deduction and get a glimpse of the Ultimate BMW Experience.

IRS Section 179 Details for the Upcoming Tax Season

Section 179 opens the door for Long Beach businesses to immediately deduct the cost of an eligible new BMW that's used professionally at least 50 percent of the time. Under the tax code, businesses can write off a qualifying vehicle as an expense when it is first placed in service.

BMW vehicles with the "Heavy" classification have GVWRs (Gross Vehicle Weight Ratings) of at least 6,000 pounds. The BMW X5, BMW X6, BMW X7, BMW XM, and BMW iX are eligible for a tax deduction. While the federal SUV deduction limit is $32,000, California has a $25,000 cap. BMW vehicles with the "Light" classification have a lower deduction limit.

The BMW vehicle must be purchased during the tax year and be actively available for business use before January 1, 2027. The title has to be in the name of the business, and the qualifying BMW vehicle must be driven for business purposes at least 50 percent of the time. If you don't use the BMW strictly for business purposes, there are reductions made to the depreciation limit. The Section 179 tax deduction can serve as a strategic growth opportunity for your business in Long Beach.

Total Transparent Price does not include government fees and taxes and any finance charge. Total Transparent Price includes $83 dealer document processing charge, $37 electronic filing charge and $50 emissions testing charge (if applicable) (not governmental fees).

We have taken reasonable efforts to ensure display of accurate data; however, the information shown may contain errors and omissions, may not reflect all vehicle items and accessories, and errors with regard to pricing may occur. All displayed inventory is subject to prior sale and all prices expire at midnight on the date displayed. Price shown is for the state in which Dealer is physically located and if transferred to another state, the price may change. Dealer is not responsible for any errors but should be consulted in person to confirm the information on this page.

PRE-OWNED VEHICLES MAY BE SUBJECT TO UNREPAIRED MANUFACTURER RECALLS. PLEASE CONTACT THE MANUFACTURER OR A DEALER FOR THAT LINE MAKE FOR RECALL ASSISTANCE/QUESTIONS OR CHECK THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION WEBSITE FOR CURRENT RECALL INFORMATION BEFORE PURCHASING.

Stipulations and Qualifications for California Taxpayers and Long Beach Business Owners

California and federal tax law differ. Here's what you need to know:

  • The title of the qualifying new BMW vehicle must be in the company's name, not in the name of the company owner.
  • You must use the eligible BMW vehicle for business purposes at least 50 percent of the time.
  • Depreciation limits are reduced proportionally for any personal use.
  • You should keep track of your business mileage with a qualifying BMW.
  • Individuals can claim the Section 179 deduction only in the tax year when the BMW vehicle is put into service.
  • California disallows federal bonus depreciation.
  • The California Franchise Tax Board (FTB) caps the maximum Section 179 expense deduction at $25,000.
  • To be eligible for a tax deduction at the time of your filing, the vehicle must be placed in service by the end of the 2026 year.

The Ultimate BMW Experience Awaits in Long Beach: Secure Your Tax Deduction Today

Discover the thrill of the drive at Long Beach BMW and reap the tax benefits by purchasing an eligible new vehicle. Located by the Long Beach Airport, our luxury car dealership offers the Ultimate BMW Experience. Elevate your business with a new BMW that's eligible for the Section 179 deduction.

Businesses from Long Beach and Orange County can strengthen their operational funding with a tax break on a qualifying new BMW purchase. Your tax advisor can calculate potential savings, and our team can answer questions about qualifying BMW models. Contact us to schedule your test drive in a new BMW designed for your business.