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How do I deduct cars over 6000 pounds on my taxes?

TL;DR

Vehicles over 6,000 pounds can be deducted using the Section 179 deduction, but they must be used more than 50% for business purposes. Be aware of limits and recapture rules if business use decreases.

Detailed Answer

The Section 179 deduction allows businesses to deduct the full purchase price of qualifying equipment, including vehicles over 6,000 pounds gross vehicle weight, in the year they are placed in service. To qualify, the vehicle must be used more than 50% for business purposes. The maximum deduction for SUVs is capped at $28,900 for 2023, while other heavy vehicles may qualify for the full Section 179 limit. If business use falls below 50% in subsequent years, a portion of the deduction may need to be recaptured. Additionally, the vehicle must be financed or purchased outright and used in the year for which you claim the deduction.

Where to Put It on the Tax Form

Schedule C, Line 13 or Form 4562 for depreciation and amortization.

Real World Example

A real estate agent purchases a new SUV weighing 6,500 pounds for $50,000 and uses it 80% for business. They can deduct $28,900 under Section 179 in the first year, subject to the SUV limit, and depreciate the remaining business-use portion over subsequent years.

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 records of business use. Be prepared to demonstrate the vehicle's business use percentage with logs or calendars.

IRS Reference

IRS Publication 946, IRS Code Section 179

Relevant Industries

FreelancersReal Estate AgentsConsultantsConstructionTransportation

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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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