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How do I deduct 6000 lb vehicle deduction on my taxes?

TL;DR

The deduction for a vehicle over 6,000 pounds is possible under Section 179, allowing businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year.

Detailed Answer

The deduction for a vehicle over 6,000 pounds is available under Section 179 of the IRS tax code. This allows businesses to deduct the full purchase price of qualifying equipment, including vehicles, purchased or financed during the tax year. To qualify, the vehicle must be used more than 50% for business purposes. The deduction is limited to a maximum of $1,160,000 for the 2023 tax year, subject to a phase-out threshold of $2,890,000. Vehicles with a gross vehicle weight rating (GVWR) over 6,000 pounds but not more than 14,000 pounds can be eligible for this deduction. However, luxury vehicles may have additional limits. For example, SUVs over 6,000 pounds but less than 14,000 pounds are limited to a $28,900 deduction for 2023.

Where to Put It on the Tax Form

Report the deduction on Form 4562, Depreciation and Amortization, Part I for Section 179 expenses.

Real World Example

A construction company purchases a new truck with a GVWR of 7,000 pounds for $50,000. The truck is used 80% for business purposes. The company can deduct $40,000 (80% of $50,000) under Section 179 in the year of purchase.

Calculation Required

A calculation is required for this deduction.

Calculate the business use percentage of the vehicle and apply it to the purchase price to determine the deductible amount. For example, if a vehicle costs $50,000 and is used 80% for business, the deductible amount is $40,000.

Audit Risk & Documentation Tips

Maintain detailed records of the vehicle's purchase price, GVWR, and business use percentage. Keep logs of business miles driven versus total miles to substantiate the business use percentage. Ensure compliance with Section 179 limits and thresholds to minimize audit risk.

IRS Reference

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

Relevant Industries

Small BusinessConstructionReal EstateTransportationDelivery Services

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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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