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Can freelancers deduct vehicles over 6,000 lbs?

TL;DR

Freelancers can deduct vehicles over 6,000 lbs if they are used for business purposes, but they must meet specific criteria and documentation requirements to qualify for this deduction.

Detailed Answer

Vehicles over 6,000 lbs may qualify for a Section 179 deduction, allowing freelancers to deduct the full purchase price in the year the vehicle is placed in service, provided it is used more than 50% for business. Alternatively, the Modified Accelerated Cost Recovery System (MACRS) can be used for depreciation. However, the vehicle must be used primarily for business, and personal use must be carefully documented. The deduction is not allowed if the vehicle is used less than 50% for business. Common vehicles that qualify include SUVs, trucks, and vans. The deduction is subject to limits, such as a maximum deduction cap for luxury vehicles.

Where to Put It on the Tax Form

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

Real World Example

A freelance photographer purchases a new SUV weighing 6,500 lbs for $50,000. The SUV is used 80% for business, transporting equipment and traveling to shoots. The photographer can deduct up to the full purchase price under Section 179, subject to the business-use percentage, resulting in a $40,000 deduction.

Calculation Required

A calculation is required for this deduction.

Calculate the business-use percentage by dividing the business miles by total miles driven. Multiply the purchase price by this percentage to determine the deductible amount.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs, receipts, and evidence of business use. Document the purchase price and ensure the vehicle's weight is over 6,000 lbs. Maintain records for at least three years.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsConstruction 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 18, 2025

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