Checkmark iconCan I Write This Off?

Can you write off what vehicles are over 6000 lbs?

TL;DR

Vehicles over 6,000 lbs may qualify for a Section 179 deduction, allowing businesses to deduct the full purchase price in the year the vehicle is placed in service, subject to certain limits and conditions.

Detailed Answer

To qualify for the Section 179 deduction, the vehicle must be used more than 50% for business purposes. The deduction is limited to the business-use percentage of the vehicle's cost. SUVs and certain other vehicles over 6,000 lbs but less than 14,000 lbs are subject to a maximum deduction limit (e.g., $28,900 for 2023). If the vehicle is used less than 50% for business, depreciation must be calculated using the Alternative Depreciation System (ADS). Vehicles like heavy trucks and vans may not have the same limits as SUVs. It's crucial to maintain accurate records of business use to substantiate the deduction.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Line 6 for other expenses if using Section 179.

Real World Example

A real estate agent purchases a new SUV weighing 6,500 lbs for $60,000. The vehicle is used 80% for business. The agent can take a Section 179 deduction of $28,900 (2023 limit for SUVs) and depreciate the remaining business-use portion of the cost over the vehicle's useful life.

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, subject to limits.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs, purchase receipts, and documentation showing the business purpose of trips. Ensure the business-use percentage is accurate and well-documented to defend the deduction.

IRS Reference

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

Relevant Industries

Small Business OwnersFreelancersReal Estate AgentsConstruction Contractors

Popular Related Pages

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