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Can freelancers deduct tax write off for vehicle over 6000 lbs?

TL;DR

Freelancers can potentially deduct expenses for vehicles over 6,000 lbs used for business purposes, but they must meet specific IRS guidelines and business-use requirements.

Detailed Answer

The IRS allows deductions for vehicles over 6,000 lbs under the Section 179 deduction, which permits businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. To qualify, the vehicle must be used more than 50% for business purposes. The deduction is limited to the business-use percentage of the vehicle. For example, if a vehicle is used 70% for business, only 70% of the cost can be deducted. Additionally, the vehicle must be purchased and put into service within the tax year. Common misconceptions include assuming any large vehicle automatically qualifies or that personal use is deductible. It's important to note that luxury SUVs have a cap on the amount that can be deducted under Section 179.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Section 179 deduction; Form 4562 for depreciation and amortization.

Real World Example

A freelance photographer purchases a large SUV for $60,000, which is used 80% for business purposes. They can deduct $48,000 (80% of $60,000) under Section 179, subject to the SUV cap.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, multiply the purchase price of the vehicle by the percentage of business use. Ensure this percentage is over 50% to qualify for Section 179. For example, if the vehicle is $60,000 and used 80% for business, the deduction is $60,000 x 0.80 = $48,000.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs to substantiate the business-use percentage, purchase receipts, and any financing agreements. Documentation should clearly separate personal and business use, and maintain records for at least three years.

IRS Reference

IRS Publication 946, How to Depreciate Property; IRC §179.

Relevant Industries

FreelancersConsultantsReal Estate AgentsConstruction Contractors

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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

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