If you own a small business or are self-employed near Memphis, the 2026 Section 179 tax deduction may be one of the smartest ways to invest in a capable new BMW for the 2026 tax year. Our team at Roadshow BMW in Cordova has proudly served the community since 1981, and we're here to help local business owners understand how qualifying BMW models may fit into their vehicle tax strategy.
This content is provided for informational purposes only, and you should always consult a qualified tax professional to confirm how Section 179 applies to your specific situation. That being said, our experts are here to help you learn about the models that could best benefit your business, so you can leverage every opportunity available to you!
2026 Section 179 Tax Deduction Overview & Limits
Section 179 of the IRS tax code lets eligible businesses deduct the purchase price of qualifying equipment, including certain new BMW vehicles, placed into service during the tax year. It's designed as a true small-business incentive that rewards companies for investing in the vehicles they need to grow. Review the general guidelines below, then talk with your tax advisor about the specifics before making a purchase.
- 2026 Deduction Limit: $2,560,0001
- Good on new and used equipment (as long as new to the buyer)
- Purchased or leased
- 2026 Spending Cap: $4,090,0001
- This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar-for-dollar basis (making it a true small-business incentive)
- Deduction begins to be reduced on a dollar-for-dollar basis -- this cap is what makes it a "small business tax incentive"
- Complete phase-out at $6,650,000
- 2026 Bonus Depreciation: 100%1
- Defined as: a tax incentive that allows a business to immediately deduct a large percentage of the purchase price of eligible assets
- Generally taken after the Spending Cap is reached
- Applies to new and used
- Must be purchased and put into use before Dec. 31, 20261
- Must be used for business purposes more than 50% of the time
- Must be titled in the company's name (not the company's owner's name)
Which BMW Vehicles Qualify for Section 179?
How a BMW qualifies under Section 179 depends largely on its gross vehicle weight rating (GVWR) and how it's used for your business. In general terms, heavier vehicles receive more favorable treatment, while lighter passenger vehicles are subject to stricter IRS limits. The list below outlines how different vehicle categories are treated under current Section 179 rules.
- New & Used Vocational Trucks and Vans: Full Section 179 deduction available1
- Heavy SUVs & Trucks (Over 6,000 lbs. GVW) (excludes some pickups/vans): $32,000 maximum Section 1791
- Cars, Light Trucks & SUVs (Under 6,000 lbs.): Subject to IRS "luxury auto" depreciation limits (Section 280F)1
Eligible new BMW models can include, but are not limited to:
These roomy, business-ready SUVs are popular choices for Memphis-area professionals who want both capability and comfort behind the wheel. Our knowledgeable sales team can show you which options may line up with the Section 179 category that fits your plans.
How Do I Use the Section 179 Tax Incentive?
Taking advantage of Section 179 starts with choosing a qualifying BMW and placing it into business use before December 31, 2026. You'll generally need to document that the vehicle is used for business purposes more than 50% of the time and that it's titled in your company's name rather than a personal name.
Our BMW finance team can guide you through selecting an eligible vehicle, though your accountant or tax professional should always confirm the exact deduction you can claim for your specific situation.
Commercial BMW Vehicles for Sale Near Me
When Memphis business owners want a dealership that treats them like a neighbor, they turn to Roadshow BMW. As a small, locally owned Tennessee BMW dealership, we've proudly served you with exceptional luxury car sales and BMW service for over 45 years, anchored in friendliness, professionalism and fairness. You can buy new or browse our selection of used cars, and shopping with us keeps your money in the Memphis area.
Visit us in TN, or contact our team to explore qualifying BMW models and take the next step toward your Section 179 tax strategy before the year-end deadline. We look forward to remaining your preferred BMW experts for years to come!
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1 Information accurate at date of publishing. Refer to https://www.section179.org for most up-to-date specifications.
Roadshow BMW Section 179 Tax Deduction FAQs
Can vehicles be deducted under Section 179?
Yes, qualifying business-use vehicles can be deducted under Section 179, which lets eligible businesses deduct the purchase price of qualifying equipment placed into service during the tax year. To qualify at our TN BMW dealership, the vehicle must be used for business purposes more than 50% of the time and titled in the company's name. Always consult a qualified tax professional to confirm how Section 179 applies to your specific situation.
Does Section 179 apply to used car purchases?
Yes, Section 179 is good on both new and used equipment, as long as the vehicle is new to the buyer and placed into service before December 31, 2026. The 2026 bonus depreciation of 100% also applies to new and used qualifying assets. Our BMW finance team in Cordova can help you explore eligible options for your business.
Can Section 179 be claimed multiple times?
Section 179 can be applied each tax year for qualifying equipment and vehicles placed into service that year, subject to the annual deduction limit and spending cap. Any vehicle you purchase at Roadshow BMW near Memphis must still meet the more than 50% business-use requirement and be titled in the company's name. Consult your tax advisor to confirm how it applies to your situation.
What is the Section 179 tax deduction limit?
The 2026 Section 179 deduction limit is $2,560,000, which applies to new and used equipment that is purchased or leased and placed into business use before the year-end deadline. Keep in mind that eligibility and treatment vary by vehicle weight class and GVWR. Visit Roadshow BMW in Cordova, TN, to explore qualifying BMW models before December 31, 2026.
What is the 2026 Section 179 spending cap?
The 2026 spending cap is $4,090,000, which is the maximum that can be spent on equipment before the Section 179 deduction begins to be reduced on a dollar-for-dollar basis, with a complete phase-out at $6,650,000. This cap is what makes Section 179 a true small-business incentive. Contact our team at Roadshow BMW near Memphis to start planning your purchase today.