Is 6000 lb suv tax deductible?
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The deduction of a 6,000 lb SUV is primarily governed by IRS rules on business vehicle expenses. If the SUV is used over 50% for business purposes, it may qualify for Section 179 expensing, allowing immediate deduction of up to $28,900 (for 2023) of the vehicle's cost. Additionally, bonus depreciation may apply, allowing further deductions. However, personal use of the vehicle must be excluded, and meticulous records of business use are essential. The vehicle must be used more than 50% for business to qualify for these deductions. Edge cases include mixed-use vehicles where the business use percentage is crucial for determining the deductible amount.