Is cars over 6000 pounds a business expense?
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Vehicles over 6,000 pounds are eligible for larger deductions due to their classification as heavy vehicles. Under IRS rules, these vehicles can qualify for Section 179 expensing, allowing a business to deduct the full purchase price in the year the vehicle is placed in service, up to a limit. Additionally, bonus depreciation can be applied to further increase the deduction. However, the vehicle must be used more than 50% for business purposes to qualify, and personal use must be carefully documented and excluded. Common examples include SUVs, trucks, and vans used by contractors or real estate agents. If the vehicle is used less than 50% for business, depreciation must be calculated using the straight-line method over a five-year period.