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Can freelancers deduct write off 6000 lb vehicle?

TL;DR

Freelancers can potentially deduct the cost of a vehicle over 6,000 lbs if it is used for business purposes, but there are specific rules and limits to consider, such as the Section 179 deduction and bonus depreciation rules.

Detailed Answer

A vehicle over 6,000 lbs can be deducted under Section 179, which allows for an immediate expense deduction of up to $28,900 for SUVs (as of 2023). The vehicle must be used more than 50% for business purposes, and the deduction is limited to the percentage of business use. Bonus depreciation may also apply, allowing for a larger deduction in the first year. However, if the vehicle is used less than 50% for business, the deduction is limited to straight-line depreciation. It's crucial to maintain detailed records of business versus personal use, as the IRS scrutinizes these deductions closely.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Line 9 for car and truck expenses.

Real World Example

A freelance graphic designer purchases an SUV weighing 6,500 lbs for $50,000. The vehicle is used 70% for business. The designer can claim a Section 179 deduction of $28,900, and potentially additional bonus depreciation on the remaining business-use portion of the cost, subject to limits.

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 and bonus depreciation.

Audit Risk & Documentation Tips

Moderate to high audit risk. Maintain a detailed mileage log, receipts, and any other documentation supporting the business use of the vehicle. Be prepared to show evidence of business purpose for trips and the method used to calculate business-use percentage.

IRS Reference

IRS Publication 946, IRS Section 179, IRS Publication 463

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 25, 2025

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