Is business vehicle over 6000 pounds a business expense?
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A vehicle over 6,000 pounds can be deducted as a business expense if it is used for business purposes. The IRS allows for a Section 179 deduction, which permits immediate expensing of the vehicle's cost, subject to limits. For 2023, the maximum Section 179 deduction for SUVs is $28,900. Additionally, vehicles can be depreciated over time using the Modified Accelerated Cost Recovery System (MACRS). The vehicle must be used more than 50% for business purposes to qualify for these deductions. If the vehicle is used for both personal and business purposes, only the business-use percentage is deductible. For example, if a vehicle is used 70% for business, only 70% of the allowable deduction can be claimed.