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Can I deduct vehicles over 6000 pounds?

TL;DR

Yes, vehicles over 6,000 pounds can be deductible under Section 179 and bonus depreciation, but they must be used for business purposes and meet specific criteria.

Detailed Answer

Vehicles over 6,000 pounds, such as SUVs, trucks, and vans, can qualify for a Section 179 deduction, allowing you to deduct a significant portion of the vehicle's cost in the year of purchase. To qualify, the vehicle must be used more than 50% for business purposes. The deduction is limited to $28,900 for SUVs in 2023, but trucks and vans with cargo areas that are not easily accessible from the passenger compartment may qualify for the full Section 179 limit. Additionally, bonus depreciation allows for 80% of the vehicle's cost to be deducted in 2023, which can be combined with Section 179. If the business use falls below 50%, or if the vehicle is not used primarily for business, the deduction may be disallowed or recaptured.

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 required to claim Section 179 and bonus depreciation.

Real World Example

A real estate agent purchases a new SUV for $65,000 in 2023 and uses it 80% for business. They can deduct $28,900 under Section 179 and apply bonus depreciation to deduct an additional $28,480 (80% of the remaining $36,100), totaling $57,380 in deductions.

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. Maintain detailed mileage logs, purchase receipts, and documentation of business use. Ensure the vehicle's weight is documented, and keep records of any personal use to substantiate the business-use percentage.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsConstructionTransportation

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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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