Can I Write This Off?

Can I deduct write off 6000 lb vehicle?

TL;DR

Yes, you can potentially deduct the cost of a vehicle over 6,000 pounds if it is used for business purposes, but specific conditions and limitations apply, such as the business-use percentage and depreciation limits.

Detailed Answer

Vehicles over 6,000 pounds may qualify for the Section 179 deduction, which allows businesses to deduct the full purchase price of qualifying equipment and/or software 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. Additionally, there are limits on the amount that can be deducted under Section 179, and the vehicle must be placed in service during the tax year. For instance, if a vehicle is used 70% for business, only 70% of the cost can be deducted. The IRS also imposes a maximum deduction limit for SUVs and similar vehicles, which is $28,900 for 2023. Vehicles that do not qualify for Section 179 may still be eligible for bonus depreciation or regular depreciation deductions.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Section 179 expense deduction, Form 4562 for depreciation and amortization.

Real World Example

A real estate agent purchases a new SUV for $60,000, which is used 80% for business purposes. The agent can deduct $28,900 under Section 179 (the maximum limit for SUVs) and may depreciate the remaining business-use cost over subsequent years.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, determine the business-use percentage of the vehicle. Multiply the vehicle's cost by this percentage to find the deductible amount. Apply the Section 179 limit if applicable, and calculate any remaining depreciation using the Modified Accelerated Cost Recovery System (MACRS).

Audit Risk & Documentation Tips

Moderate audit risk. Maintain detailed records of business versus personal use, such as a mileage log, purchase receipts, and any financing agreements. Keep documentation of the vehicle's weight and ensure it meets the IRS's definition of a qualifying vehicle. Be prepared to justify the business-use percentage if audited.

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 15, 2025

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