If you’re looking to add a 2025 GMC Sierra HD to your lineup for the new year, Shea Buick GMC can help. We’re dedicated to matching drivers with the right vehicle for their business needs, and we want to make it easy to save when you can. Learn how Section 168(k) can help business owners save on their vehicle purchases.
What Is Qualified Property?
To understand section 168(k), it’s important to first look at the meaning of qualified property, which is especially relevant to vehicle purchases. Qualified property is tangible property that can depreciate in value. This may include heavy machinery, large appliance purchases, or even fire and alarm systems. Importantly, vehicles must meet non-personal use status in order to be considered qualified property.
What Is Section 168(k)?
Section 168(k) allows businesses owners to take tax deductions on qualified property, such as your 2025 GMC Sierra HD. This purchase can be treated as a work expense and will therefore be deductible for the taxable year in which it is purchased and put into service for your business. You may even be able to benefit from these deductions when purchasing upfits or specific packages for your vehicle, as well, as long as it falls within the parameters of business use.
For passenger vehicles, the depreciation valuation limit is $20,400 for the first year. For the second tax year, it is $19,800, and for the third tax year it is $11,900.
Save on 2025 GMC Sierra HD Models in Flint, MI
When the time comes for a new work truck, make the dealership Shea Buick GMC. We make it easy to pick out the next great truck, and to navigate the purchasing process with ease. Learn more about tax benefits and savings at our dealership.
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