Checkmark iconCan I Write This Off?

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

TL;DR

Vehicles over 6000 lbs can be deductible under certain conditions as a business expense.

Detailed Answer

Vehicles over 6000 lbs can qualify for a Section 179 deduction or bonus depreciation if they are used more than 50% for business purposes. These deductions allow businesses to expense the cost of the vehicle in the year it is placed in service, rather than depreciating it over several years. However, the vehicle must be used for business purposes, and personal use must be accounted for separately. The deduction is limited to the business use percentage of the vehicle's cost.

Where to Put It on the Tax Form

Report on Form 4562, Depreciation and Amortization, Part I for Section 179 deduction and Part II for bonus depreciation.

Real World Example

A construction company purchases a new truck weighing 7000 lbs 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 the truck is placed in service.

Calculation Required

A calculation is required for this deduction.

Calculate the deduction by multiplying the cost of the vehicle by the business use percentage. 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 mileage logs and records of business use versus personal use. Keep purchase receipts and any financing agreements. Be prepared to justify the business use percentage in case of an audit.

IRS Reference

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

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