Can freelancers deduct 6000 lb vehicles?
Vehicle_Expensesfreelancerssmall businessconsultantsreal estate agentsvehicle
Freelancers can deduct the cost of vehicles over 6,000 pounds through Section 179 or bonus depreciation if the vehicle is used more than 50% for business purposes. The deduction is limited to the percentage of business use. For example, if a vehicle is used 70% for business, only 70% of the cost can be deducted. Additionally, the vehicle must be purchased and placed in service during the tax year. The deduction is subject to a maximum limit, which can vary annually.