Section 179 Tax Deduction for BMW Vehicles


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Potential BMW Tax Advantages for Los Angeles Business Owners

Drive your business forward with a new BMW and reap the tax benefits along the way. Section 179 of the Internal Revenue Code lets businesses deduct the cost of an eligible new BMW that's used professionally at least 50 percent of the time. Qualifying BMW vehicles include the X5, X6, X7, XM, iX, 7 Series, and i7. Explore your business upgrade opportunities at the world-famous and customer-driven Beverly Hills BMW. This tax deduction is designed to assist self-employed individuals and business owners in Beverly Hills and throughout the Westside of Los Angeles.

IRS Section 179 Details for the Upcoming Tax Season

There are tax savings for Beverly Hills business owners who want to drive a BMW for professional use. Section 179 of the tax code lets businesses deduct the purchase price of qualifying equipment, rather than having the asset depreciate over several years.

Multiple BMW models are eligible and fall under the "Heavy" category with a GVWR (Gross Vehicle Weight Rating) of at least 6,000 pounds. The BMW X5, BMW X6, BMW X7, BMW XM, and BMW iX meet the requirements. The SUV deduction limit is $32,000. However, California has a $25,000 cap, lower than the federal limit. Qualifying vehicles in the "Light" classification have a significantly lower tax deduction limit.

To qualify for the tax break, the BMW vehicle must be purchased during the tax year and put into service before January 1, 2027. The qualifying BMW vehicle must be titled in the business name and have at least 50 percent business use, as there are proportionate reductions for personal use. The Section 179 tax deduction empowers Beverly Hills businesses and improves cash flow.

Plus government fees and taxes, any finance charges, any electronic filing charge, and any emission testing charge. A dealer document processing charge of $80 is included in the total price.

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 LA Business Owners

California and federal tax law differ, and there are additional conditions to keep in mind:

  • The title of the qualifying new BMW vehicle must be in the company's name, not in the name of the company owner.
  • The qualifying BMW vehicle must be used for business purposes at least 50 percent of the time. There is a proportionate reduction of depreciation limits for personal use.
  • Customers should log business mileage with precision.
  • 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.
  • The vehicle must be placed in service by the end of 2026.

Our World-Famous BMW Dealership in Beverly Hills Can Drive Your Business Forward

Upgrade your business transportation to a luxurious BMW from our BMW dealership on Wilshire Blvd., just east of El Rey Theatre and the Los Angeles County Museum of Art. We are the world-famous Beverly Hills BMW. Our reputation for exceptional customer care is known worldwide. Customers who want to secure this tax deduction can expect world-class treatment and attention to detail from our staff.

Business owners from Beverly Hills, Santa Monica, Hollywood, and greater Los Angeles can purchase an eligible new BMW model and enjoy immediate tax benefits. Calculate potential tax savings with your tax advisor, and contact our team if you have questions on qualifying vehicles.