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Is 6000 lb suv a business expense?

TL;DR

A 6,000 lb SUV can be a deductible business expense if it is used for business purposes, but specific rules apply, including the potential for bonus depreciation and Section 179 expensing.

Detailed Answer

The purchase of a 6,000 lb SUV can be deductible as a business expense if the vehicle is used more than 50% for business purposes. Under the IRS rules, vehicles with a Gross Vehicle Weight Rating (GVWR) over 6,000 lbs are eligible for more favorable depreciation rules, including Section 179 expensing and bonus depreciation. For 2023, businesses can expense up to $28,900 of the cost of the SUV under Section 179, provided it is used more than 50% for business. The remaining cost can be depreciated over five years. However, if the business use falls below 50%, the taxpayer may need to recapture some of the depreciation. It's important to note that personal use of the vehicle is not deductible, and accurate records of business versus personal use must be maintained.

Where to Put It on the Tax Form

Schedule C, Part II, Line 13 for depreciation and Line 9 for car and truck expenses.

Real World Example

A real estate agent purchases a 6,500 lb SUV for $60,000. They use it 80% for business to show properties and meet clients. They can expense $28,900 under Section 179 and apply bonus depreciation to the remaining business portion of the cost. They must maintain a log of business miles driven to substantiate the deduction.

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 portion. Use this percentage to allocate expenses between business and personal use.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs, receipts for vehicle purchase, and records of business use. Ensure that the business use percentage is well-documented and justifiable. Consider using a mileage tracking app for accuracy.

IRS Reference

IRS Pub 946, IRS Pub 463, IRC §179

Relevant Industries

FreelancersReal Estate AgentsConsultantsConstruction Contractors

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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 25, 2025

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