Reviewed by Arya Keshavarzian, Co-Founder
The rules in plain English
- Section 179 and bonus depreciation apply to vehicles your business buys or finances. On a lease you do not take Section 179; you deduct the business share of the payments instead.
- The vehicle must be used more than 50% for business, and the deduction follows the business-use share.
- What counts is the gross vehicle weight rating (GVWR), the maximum loaded weight on the driver’s door sticker, not the curb weight.
- Passenger vehicles at or under 6,000 lbs fall under the much lower IRS “luxury auto” depreciation caps.
Buying, financing or leasing a heavy SUV for your business?Get a quote
The 2026 numbers
- Section 179 limit for SUVs over 6,000 lbs GVWR (up to 14,000 lbs): $32,000 for tax years beginning in 2026 (IRS Rev. Proc. 2025-32).
- Bonus depreciation: 100%, now permanent, for qualifying property acquired after January 19, 2025 (One Big Beautiful Bill Act; IRS Notice 2026-11). It can apply to the cost left after the Section 179 amount.
- The overall Section 179 limit for 2026 is $2,560,000, reduced once total purchases pass $4,090,000.
Depreciation you claim can be recaptured if business use later drops to 50% or less, or if you sell the vehicle.
Luxury SUVs over 6,000 lbs GVWR
GVWR for one US trim of each, from published spec listings. It varies by trim, engine and model year, so check the sticker on the driver’s door jamb of the exact vehicle before you count on it.
| Model | Trim checked | GVWR (lbs) |
|---|---|---|
| Mercedes-Benz G-Class | G 550 | 7,055 |
| Mercedes-Benz GLS | GLS 450 4MATIC | 7,341 |
| BMW X7 | xDrive40i | about 7,090 |
| BMW X5 | xDrive40i | 6,360 |
| Porsche Cayenne | base | about 6,250 |
| Range Rover | P530 SE | 7,450 |
| Range Rover Sport | SE P360 | 7,095 |
| Land Rover Defender 110 | varies by engine | 6,845 to 7,120 |
| Cadillac Escalade | varies by trim | 7,400 to 7,700 |
| Lexus LX | LX 700h | 7,450 |
Buying vs leasing a heavy SUV for business
Buying or financing front-loads the write-off into the first year. Leasing spreads the deduction over the payments and keeps the monthly cost fixed. Which comes out ahead depends on your income, how long you keep the car and how you use it. We help with buying, financing and leasing, so we can price the same SUV each way for you and your accountant. See how to lease through your business.
This guide is general information, not tax advice. Tax rules change and depend on your situation. Confirm with your CPA before you buy.
Next step
See the luxury SUV deals, or tell us the SUV you want and whether you plan to buy, finance or lease.