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Can freelancers deduct what vehicles are over 6000 lbs?

TL;DR

Freelancers can generally deduct the business use of vehicles over 6,000 lbs under Section 179 or bonus depreciation, but the vehicle must be used more than 50% for business purposes, and there are limits on the deduction amount.

Detailed Answer

Vehicles over 6,000 lbs can be deducted using Section 179 or bonus depreciation, provided they are used more than 50% for business purposes. Section 179 allows immediate expensing of up to $28,900 for SUVs in 2023, while bonus depreciation may allow for a larger deduction. However, the vehicle must be used for business more than 50% of the time, and personal use must be excluded from the deduction. If the vehicle is not used more than 50% for business, depreciation must be calculated using the Alternative Depreciation System (ADS), which is less favorable. Common misconceptions include thinking that the entire cost of the vehicle can be deducted in one year regardless of use, which is not true.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Section 179 expense deduction.

Real World Example

A freelance photographer purchases an SUV weighing over 6,000 lbs for $50,000. She uses it 80% for business, so she can deduct $28,900 using Section 179 in 2023. The remaining cost can be depreciated over the vehicle's useful life.

Calculation Required

A calculation is required for this deduction.

Calculate the business-use percentage by dividing business miles by total miles driven. Apply this percentage to the vehicle's cost to determine the deductible amount under Section 179 or bonus depreciation.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs showing business versus personal use, purchase receipts, and any financing agreements. Ensure documentation supports the business-use percentage claimed.

IRS Reference

IRS Publication 946, IRS Code Section 179, IRS Code Section 168(k).

Relevant Industries

FreelancersConsultantsReal Estate AgentsContractors

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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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