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Can you write off vehicles over 6000 pounds?

TL;DR

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

Detailed Answer

Vehicles over 6,000 pounds 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. Section 179 allows you to deduct up to $28,900 (for 2023) of the cost of a new or used vehicle in the year it is placed in service. Bonus depreciation allows for 80% deduction of the remaining cost. However, personal use of the vehicle must be carefully tracked and deducted from the business use percentage. Vehicles that qualify include SUVs, trucks, and vans that meet the weight requirement. It's important to note that luxury vehicles have different limits and rules.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Line 24a for car and truck expenses.

Real World Example

A real estate agent purchases a new SUV for $60,000, which is over 6,000 pounds. The agent uses the vehicle 80% for business. They can deduct $28,900 under Section 179 and apply bonus depreciation on the remaining business-use portion, resulting in a significant deduction in the first 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. Maintain detailed mileage logs, purchase receipts, and records of business use. Ensure personal use is accurately tracked and deducted from business use. Consider using a mileage tracking app for accuracy.

IRS Reference

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

Relevant Industries

Real Estate AgentsConstruction ContractorsConsultantsFreelancers

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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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