Checkmark iconCan I Write This Off?

Is 6000 lb vehicle deduction a valid tax write-off?

TL;DR

The 6,000 lb vehicle deduction, often referred to as the 'SUV tax loophole,' is generally deductible under certain conditions, primarily for business use. However, it is subject to specific IRS rules and limitations that must be adhered to carefully.

Detailed Answer

The deduction for vehicles over 6,000 pounds is primarily governed by the Section 179 deduction and bonus depreciation rules. Business owners can deduct a portion of the cost of a qualifying vehicle used for business purposes. To qualify, the vehicle must be used more than 50% for business. For 2023, the maximum Section 179 deduction for such vehicles is $28,900. Additionally, bonus depreciation may allow for further deductions, but the vehicle must be placed in service within the tax year. Personal use of the vehicle must be excluded from the deduction calculation, and accurate records must be maintained to substantiate business use.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation; Form 4562 for Section 179 and bonus depreciation.

Real World Example

A real estate agent purchases a new SUV weighing 6,500 pounds for $50,000. The vehicle is used 80% for business. The agent can claim a Section 179 deduction of $28,900 and potentially apply bonus depreciation on the remaining business-use portion of the vehicle's cost.

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 and bonus depreciation.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs, receipts, and records of business use. Ensure that the vehicle's weight and business use percentage are well-documented. Maintain purchase documents and any relevant financing agreements.

IRS Reference

IRS Pub 946, IRC §179

Relevant Industries

FreelancersReal Estate AgentsConsultantsConstruction Contractors

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 18, 2025

Back to Search