Section 179 Expense Allowance

Summary of 2016-17 Chrysler, Dodge, Jeep®, Ram, FIAT® Bonus Depracation & Section 179 Expense Allowance

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    50% Bonus DepreciationSection 179 Expensing 

Brand

Model

MSRP*

GVWR*

(New Vehicles Only)

(New or PreOwned Vehicles)

Detail

chrysler logoChrysler Pacifica$28,5954,600 lbs$11,560$11,560A,E
chrysler logoChrysler 200$21,9954,600 lbs$10,998$11,160A,E
chrysler logoChrysler 300$32,2605,100 lbs$11,160$11,160A,E
chrysler logoChrysler Town & Country$29,9956,050 lbs$14,998$25,000C,E
ram-commercialRam ProMaster® Van 1500 118" WB (VF1L11)$29,8658550 lbs$14,933$29,865B,E
ram-commercialRam ProMaster® Van 2500 136" WB (VF2L13)$32,4958900 lbs$16,248$32,495B,E
ram-commercialRam ProMaster® Van 3500 159" WB (VF3L16)$37,0109,350 lbs$18,505$37,010B,E
ram-commercialRam ProMaster City®$24,4455,395 lbs$12,223$24,445B,E
ram-commercialRam 1500 Regular Cab 6'4" box$30,8056,350 lbs$15,403$30,805B,E
ram-commercialRam 1500 Quad Cab 6'4" box$34,0856,950 lbs$17,043$34,085B,E
ram-commercialRam 1500 Crew Cab 5'7" box$36,5406,950 lbs$18,270$25,000B,E
ram-commercialRam 2500 Regular Cab 8' box$31,7808,510 lbs$15,890$31,780B,E
ram-commercialRam 3500 Regular Cab 8' box$32,28510,700 lbs$16,143$32,285B,E
ram-commercialRam Chassis Cab 3500$32,87012,500 lbs$16,435$32,870B,E
ram-commercialRam Chassis Cab 4500$36,24516,500 lbs$18,123$36,245B,E
ram-commercialRam Chassis Cab 5500$37,34519,000 lbs$18,673$37,345B,E
DODGE LOGODodge Challenger$26,9954,950 lbs$11,160$11,160A,E
DODGE LOGODodge Charger$27,9955,100 lbs$11,160$11,160A,E
DODGE LOGODodge Dart$17,9953,173 lbs$8,998$11,160A,E
DODGE LOGODodge Durango$30,4956,500 lbs$15,248$25,000C,E
DODGE LOGODodge Journey$20,9955,005 lbs$10,498$11,160A,E
DODGE LOGODodge Grand Caravan$23,5956,050 lbs$11,798$23,595C,E
Jeep_LogosJeep® Renegade$17,9954,900 lbs$8,998$11,160A,E
Jeep_LogosJeep® Cherokee$23,4955,500 lbs$11,160$11,160A,E
Jeep_LogosJeep® Grand Cherokee$29,9956,500 lbs$14,998$25,000C,E
Jeep_LogosJeep® Patriot$17,6954,435 lbs$8,848$11,160A,E
Jeep_LogosJeep® Compass$19,6954,575 lbs$9,848$11,160A,E
Jeep_LogosJeep® Wrangler$23,8954,803 lbs$11,160$11,160A,E
Jeep_LogosJeep® Wrangler Unlimited$26,6955,300 lbs$11,160$11,160A,E
brand-tile-fiatFIAT® 500$16,9953,300 lbs$8,498$11,160A,E
brand-tile-fiatFIAT® 500c$24,4953,300 lbs$11,160$11,160A,E
brand-tile-fiatFIAT® 500e$31,8003,300 lbs$11,160$11,160A,D,E
brand-tile-fiatFIAT® 500L$19,4953,300 lbs$9,748$11,160A,E
brand-tile-fiatFIAT® 500 Abarth$26,6953,300 lbs$11,160$11,160A,E

A – Expense up to $11,160 ($11,560 for Vans,Light Trucks) due to the limitation on passenger automobiles, trucks, SUVs and vans provided by Internal Revenue Code Section 280F(d)(4)(A) and Revenue Procedure 2016-23. This deduction assumes 100% business use of the vehicle by a taxpayer in a trade or business.B – Trucks and vans with a gross vehicle weight rating (GVWR) greater than 6,000 pounds are not subject to the annual depreciation caps under the luxury car rules (Internal Revenue Code Section 280F(d)(5)(B)(iii)). Vehicles over 6,000 pounds with a cargo area larger than 6′ may be fully expensed under section 179 up to $500,000 when less than $2,010,000 of eligible section 179 property is placed in service. This deduction assumes 100% business use of the vehicle by a taxpayer in a trade or business.

C – Sport Utility Vehicles (SUVs), passenger vans that do not seat more than 9 persons behind the passenger seat, and trucks with an interior cargo bed length less than 6 feet that have a GVWR of 6,000 pounds or more are not subject to the luxury car depreciation caps. However, they are limited to a $25,000 Section 179 expense allowance when less than $2,010,000 of eligible section 179 property is placed in service (Revenue Procedure 2003-75). The remaining basis of the vehicle is depreciated using MACRS 200% Double Declining Balance over a five year period. This estimated deduction assumes 100% business use of the vehicle by a taxpayer in a trade or business.

D – The 2016 FIAT® 500e electric vehicle may be eligible for the full $7,500 federal Section 30D tax credit, and state incentives including the $2,500 California Clean Vehicle Rebate Project (CVRP).

E – Customers should always independently verify the GVWR and bed length of a vehicle before making any purchase, claiming exemption from the depreciation limitations, or electing the section 179 deduction.

*The stated MSRP is for vehicle base models.

The material presented in this document is for informational purposes only and is not offered as legal or tax advice. This work sheet is not intended to be used, nor should it be used, by any taxpayer as a defense against federal or state taxes or penalties. You are urged to seek the advice of your tax advisor for specific tax or legal questions.