Checkmark iconCan I Write This Off?

Can you write off vehicles that weigh over 6000 lbs?

TL;DR

Yes, vehicles that weigh 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.

Detailed Answer

Vehicles over 6,000 lbs can qualify for a Section 179 deduction, allowing small businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. However, the vehicle must be used more than 50% for business purposes. Additionally, bonus depreciation can be applied to these vehicles, allowing further deductions. If the vehicle is used less than 100% for business, only the business-use percentage of the cost can be deducted. For instance, if a vehicle is used 70% for business, only 70% of the cost can be deducted. It's important to note that luxury auto limits do not apply to vehicles over 6,000 lbs, but there are still caps on the total deduction amount.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Line 20a for other expenses related to vehicle use.

Real World Example

A real estate agent purchases a new SUV weighing 7,000 lbs for $60,000. The SUV is used 80% for business. The agent can claim a Section 179 deduction for 80% of the purchase price, which is $48,000, provided they meet all other requirements.

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 purchase price by this percentage to find the deductible amount. For example, if a vehicle costs $60,000 and is used 80% for business, the deductible amount is $60,000 x 0.80 = $48,000.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed records of the vehicle's business use, such as mileage logs, purchase receipts, and any financing agreements. Document the business purpose of trips and maintain a calendar of business activities to substantiate the business-use percentage.

IRS Reference

IRS Pub 946, IRS Code Section 179, and IRS Code Section 168(k)

Relevant Industries

Small Business OwnersFreelancersReal Estate AgentsConstruction 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 25, 2025