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Can I deduct cars over 6000 lbs?

TL;DR

Yes, you can deduct cars over 6000 lbs if used for business purposes, subject to certain conditions.

Detailed Answer

Vehicles over 6,000 pounds can qualify for a Section 179 deduction, allowing businesses to 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 subject to limits and phase-outs, and the vehicle must be new or used but new to the taxpayer. The deduction is also subject to the overall Section 179 limits and the business income limitation.

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 heavy-duty truck weighing 7,000 lbs for $50,000. The truck is used 80% for business purposes. The company can deduct a portion of the truck's cost under Section 179, subject to the annual limits.

Calculation Required

A calculation is required for this deduction.

Calculate the business use percentage of the vehicle and apply it to the purchase price to determine the deductible amount under Section 179. Ensure it does not exceed the annual Section 179 limit and the business income limitation.

Audit Risk & Documentation Tips

Keep detailed records of the vehicle's business use, including mileage logs and purchase documentation. Ensure the vehicle is used more than 50% for business to qualify for the deduction. Be prepared to justify the business use percentage if audited.

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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