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Can I deduct suv over 6000 lbs?

TL;DR

Yes, you can generally deduct the cost of an SUV 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 limits.

Detailed Answer

SUVs with a gross vehicle weight rating (GVWR) over 6,000 lbs can qualify for a Section 179 deduction, allowing you to deduct up to $28,900 (as of 2023) of the vehicle's cost in the year of purchase, provided it is used more than 50% for business. Additionally, bonus depreciation may allow you to deduct a larger portion of the vehicle's cost, potentially up to 100%, depending on the year of purchase and other factors. However, personal use of the vehicle must be excluded from these calculations, and proper documentation of business use is essential. If the vehicle is used less than 50% for business, the deduction is limited to the standard depreciation rules.

Where to Put It on the Tax Form

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

Real World Example

A real estate agent purchases a new SUV with a GVWR of 6,500 lbs for $60,000. The vehicle is used 80% for business. The agent can deduct $28,900 under Section 179 and apply bonus depreciation to the remaining business-use portion, provided the vehicle is placed in service during the tax year.

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 audit risk. Keep detailed mileage logs, purchase receipts, and documentation of business use. Ensure the vehicle's GVWR is documented and maintain records of any personal use to substantiate the business-use percentage.

IRS Reference

IRS Publication 946, How to Depreciate Property; IRC §179.

Relevant Industries

Small Business OwnersReal Estate AgentsConsultantsConstruction Contractors

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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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