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Can I deduct 6000 lb vehicle deduction?

TL;DR

Yes, you can deduct the cost of a 6000 lb vehicle if it is used for business purposes, subject to specific conditions.

Detailed Answer

The deduction for a vehicle over 6,000 pounds is available under Section 179 of the IRS Code, which allows businesses to deduct the full purchase price of qualifying equipment 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's cost. Additionally, there are limits on the total amount that can be deducted under Section 179 and specific rules for luxury vehicles.

Where to Put It on the Tax Form

Form 4562, Depreciation and Amortization, Part I for Section 179 Deduction

Real World Example

A construction company purchases a new truck weighing 7,000 lbs for $50,000 and uses it 80% for business. They can deduct $40,000 (80% of the purchase price) under Section 179, subject to the annual deduction limit.

Calculation Required

A calculation is required for this deduction.

Calculate the business-use percentage of the vehicle's cost. For example, if the vehicle costs $50,000 and is used 80% for business, the deductible amount is $50,000 x 80% = $40,000.

Audit Risk & Documentation Tips

Maintain detailed mileage logs and records of business use to substantiate the deduction. Keep purchase receipts and financing agreements. Be aware that vehicles are a common audit trigger, so thorough documentation is crucial.

IRS Reference

IRS Publication 946, How to Depreciate Property; IRS Section 179 Deduction

Relevant Industries

Small BusinessConstructionReal EstateTransportation

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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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