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Can I deduct 6000 pound vehicle tax deduction?

TL;DR

Yes, you can potentially deduct the cost of a vehicle over 6,000 pounds if it is used for business purposes, subject to specific IRS rules and limits.

Detailed Answer

The IRS allows a special deduction for vehicles over 6,000 pounds under Section 179, which lets you deduct the full purchase price of qualifying equipment purchased or financed during the tax year. However, the vehicle must be used more than 50% for business purposes. The deduction is limited to a maximum of $28,900 for SUVs and similar vehicles in 2023. For other vehicles, the full Section 179 limit may apply. If the vehicle is used for both personal and business purposes, only the business-use portion is deductible. Additionally, the vehicle must be placed in service during the tax year you are claiming the deduction.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Line 9 for car and truck expenses. Form 4562 is used to claim the Section 179 deduction.

Real World Example

A freelance photographer purchases a new SUV weighing 6,500 pounds for $40,000 in 2023. She uses it 80% for business, driving to client locations and transporting equipment. She can claim a Section 179 deduction of up to $28,900, limited by the business-use percentage, resulting in a deduction of $23,120 (80% of $28,900).

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, determine the business-use percentage of the vehicle and apply it to the maximum allowable deduction under Section 179. For example, if the vehicle is used 80% for business, multiply the maximum deduction ($28,900) by 80%.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed records of business use, including mileage logs, receipts for vehicle purchase, and any financing agreements. Document the business purpose of each trip to substantiate the business-use percentage.

IRS Reference

IRS Publication 946 and IRC §179.

Relevant Industries

FreelancersReal Estate AgentsConsultantsDelivery ServicesConstruction

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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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