Checkmark iconCan I Write This Off?

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

TL;DR

Yes, vehicles over 6,000 pounds can be deductible under certain conditions.

Detailed Answer

Vehicles over 6,000 pounds may qualify for a Section 179 deduction, allowing businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. This deduction is available for vehicles used more than 50% for business purposes. However, there are limits on the amount that can be deducted, and luxury vehicles have additional caps.

Where to Put It on the Tax Form

Form 4562, Depreciation and Amortization, Part I for Section 179 deduction

Real World Example

A construction company purchases a new truck weighing 7,000 pounds for $50,000. The truck is used 80% for business. The company can deduct up to $25,000 of the truck's cost under Section 179, subject to the overall business income limit.

Calculation Required

A calculation is required for this deduction.

Calculate the percentage of business use and apply it to the cost of the vehicle to determine the deductible amount. For example, if the vehicle is used 80% for business, multiply the cost by 0.80 to find the business portion.

Audit Risk & Documentation Tips

High audit risk if business use is overstated. Keep detailed mileage logs, purchase receipts, and records of business use to substantiate the deduction.

IRS Reference

IRS Publication 946, How to Depreciate Property; Section 179 of the Internal Revenue Code

Relevant Industries

Small BusinessConstructionReal EstateTransportation

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

Back to Search