Checkmark iconCan I Write This Off?

Can you write off cars over 6000 lbs?

TL;DR

Yes, vehicles over 6,000 lbs can be written off under certain conditions, primarily through Section 179 and bonus depreciation, but they must be used for business purposes and meet specific requirements.

Detailed Answer

Vehicles over 6,000 lbs can qualify for significant tax deductions under Section 179 and bonus depreciation. To qualify, the vehicle must be used more than 50% for business purposes. Under Section 179, you can deduct the full purchase price of qualifying equipment, up to a limit, in the year it is placed in service. For 2023, the maximum deduction is $1,160,000, and the vehicle must be financed or purchased and used by December 31. Bonus depreciation allows you to deduct 80% of the cost of the vehicle in the first year, which is scheduled to phase down in future years. It's important to note that personal use of the vehicle must be excluded from the deduction calculation, and detailed records must be kept to substantiate business use.

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 details.

Real World Example

A real estate agent purchases a new SUV weighing 6,500 lbs for $70,000. The vehicle is used 80% for business purposes. The agent can claim a Section 179 deduction up to the business-use portion of the vehicle's cost, which is $56,000 (80% of $70,000), and potentially use bonus depreciation for the remaining cost.

Calculation Required

A calculation is required for this deduction.

Calculate the business-use percentage by dividing business miles by total miles driven. Multiply the vehicle's cost by this percentage 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 showing the percentage of business use. Keep records of all expenses related to the vehicle, including fuel, maintenance, and insurance, to substantiate the business-use claim.

IRS Reference

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

Relevant Industries

Small Business OwnersFreelancersReal 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 18, 2025

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