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How do I deduct 6000 pound vehicle tax deduction on my taxes?

TL;DR

The deduction for a vehicle over 6,000 pounds is generally available under the Section 179 deduction, allowing for accelerated depreciation, but it must be used for business purposes. Be aware of limits and specific requirements for eligibility.

Detailed Answer

The IRS allows a Section 179 deduction for vehicles over 6,000 pounds gross vehicle weight (GVW) used more than 50% for business purposes. This deduction allows you to expense up to a certain amount of the vehicle's cost in the year it is placed in service, rather than depreciating it over several years. For 2023, the maximum Section 179 deduction for SUVs is limited to $28,900. Vehicles like heavy trucks and vans may qualify for a higher deduction. To qualify, the vehicle must be used more than 50% for business, and the deduction cannot exceed the taxable income from the business. If the business use falls below 50% in subsequent years, you may have to recapture some of the deduction.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Section 179 expense deduction; Form 4562 for depreciation and amortization.

Real World Example

A freelance photographer purchases a new SUV weighing 6,500 pounds for $60,000 and uses it 80% for business. They can claim a Section 179 deduction of up to $28,900 in the year of purchase, reducing their taxable income significantly.

Calculation Required

A calculation is required for this deduction.

Calculate the business-use percentage by dividing the business miles by total miles driven. Multiply the vehicle's cost by this percentage to determine the deductible amount. Ensure it does not exceed the Section 179 limit for the vehicle type.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain thorough records, including purchase receipts, mileage logs, and documentation proving business use. Keep records for at least three years. Consider using a mileage tracking app to ensure accuracy.

IRS Reference

IRS Publication 946, IRS Code Section 179

Relevant Industries

FreelancersReal Estate AgentsConsultantsConstructionDelivery 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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