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Can you write off cars over 6000 pounds?

TL;DR

Yes, you can write off cars over 6,000 pounds under certain conditions using Section 179 and bonus depreciation.

Detailed Answer

Vehicles over 6,000 pounds can be eligible for a Section 179 deduction, which allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. Additionally, bonus depreciation may apply, allowing further deductions. However, the vehicle must be used more than 50% for business purposes, and the deduction is limited to a certain amount, which can vary annually. For example, in 2023, the maximum deduction under Section 179 for SUVs is capped at $28,900. It's important to note that these deductions are not applicable for personal use vehicles.

Where to Put It on the Tax Form

Report on Form 4562, Depreciation and Amortization, Part I for Section 179 and Part II for bonus depreciation.

Real World Example

A construction company purchases a new truck weighing 7,000 pounds for $50,000. The truck is used 80% for business purposes. The company can apply a Section 179 deduction up to $28,900, and potentially use bonus depreciation for the remaining cost.

Calculation Required

A calculation is required for this deduction.

Calculate the business use percentage of the vehicle and apply the Section 179 deduction limit. If applicable, calculate bonus depreciation on the remaining cost.

Audit Risk & Documentation Tips

Maintain detailed records of the vehicle's purchase price, business use percentage, and any financing agreements. Keep a mileage log to substantiate business use. Be prepared to provide documentation if audited, as vehicle deductions are often scrutinized.

IRS Reference

IRS Publication 946, How to Depreciate Property; IRS Code Section 179

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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