If you’ve recently bought a 2025 Nissan Frontier for your business, you’re eligible for several benefits come tax time. That includes deductions via Section 168 of the IRS tax code, which helps Hall Nissan Virginia Beach drivers reduce their overall vehicle expenses. To learn how, here’s the basics of this vehicle tax deduction.
What Is Section 168?
Section 168 of the tax code refers to the accelerated recovery cost system, which is a deduction for business-related property that depreciates after it is purchased. Under this deduction, a vehicle is considered qualified property, and the purchase cost and any related expenses can be partially deducted from your taxes.
How Much Can I Deduct?
The deduction decreases annually. The maximum deduction for 2024 is up to 60% of the cost of a vehicle added to your fleet this year, and the number will decrease by 20% in 2025. Upfits and accessories included at signing may also be eligible for this deduction as long as they are installed at the factory or by the dealership. You may also be able to combine this benefit with a Section 179 deduction.
Which Models Are Eligible?
The vehicle must be used for commercial purposes, must meet specific GVWR requirements, and may not have been transferred to you by a family member or another of your businesses. Your Nissan dealer can help you navigate the requirements, and we also suggest talking to your accountant or tax professional the same way you would about any other tax-adjacent concerns.
Discover Business Benefits for the 2025 Nissan Frontier in Virginia Beach, VA
Want to learn more about this tax benefit and how it can reduce your 2025 Nissan Frontier expenses? Contact Hall Nissan Virginia Beach to talk with our financial experts about Section 168.