Can I Write This Off?Can freelancers deduct 6000 lb vehicle deduction?
TL;DR
Freelancers can potentially deduct the cost of a vehicle over 6,000 lbs used for business purposes, subject to specific conditions and limitations.
Detailed Answer
Where to Put It on the Tax Form
Report on Form 4562, Depreciation and Amortization, Part I for Section 179 deduction.
Real World Example
A freelance photographer purchases a new SUV weighing 6,500 lbs for $50,000. The vehicle is used 80% for business. The photographer can deduct 80% of the vehicle's cost under Section 179, subject to the annual limit.
Calculation Required
A calculation is required for this deduction.
Calculate the business-use percentage of the vehicle's cost and apply the Section 179 limit. For example, if the vehicle costs $50,000 and is used 80% for business, the deductible amount is $50,000 x 80% = $40,000, subject to Section 179 limits.
Audit Risk & Documentation Tips
Maintain detailed mileage logs and records of business use to substantiate the deduction. Keep purchase documents and ensure the vehicle is listed as a business asset. Be prepared to demonstrate the business-use percentage if audited.
IRS Reference
IRS Publication 946, IRS Code Section 179
Relevant Industries
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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.
Page created on July 15, 2025