Can freelancers deduct business vehicle over 6000 pounds?
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Freelancers can deduct the cost of a business vehicle over 6,000 pounds if it is used for business purposes. The deduction can be taken under Section 179, which allows for immediate expensing of the vehicle up to a certain limit, or through bonus depreciation. The vehicle must be used more than 50% for business, and 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, there are specific limits on the amount that can be deducted for luxury vehicles.