Can freelancers deduct 6000 lb vehicle deduction?
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Freelancers can deduct the cost of a vehicle over 6,000 lbs used for business purposes under the Section 179 deduction, which allows for the immediate expensing of certain business assets. However, the vehicle must be used more than 50% for business, and the deduction is limited by the vehicle's cost and the overall Section 179 limit for the year. The vehicle must also be new or new to the taxpayer. If the vehicle is used less than 100% for business, only the business-use percentage of the cost can be deducted. Additionally, the bonus depreciation rules may apply, allowing further deductions.