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Is 6000 lb vehicles a business expense?

TL;DR

Vehicles over 6,000 pounds can be deducted as a business expense if they are used for business purposes, but specific rules and limits apply, such as the Section 179 deduction and bonus depreciation.

Detailed Answer

Vehicles with a gross vehicle weight rating (GVWR) over 6,000 pounds are eligible for significant tax deductions under Section 179 and bonus depreciation. To qualify, the vehicle must be used more than 50% for business purposes. For 2023, businesses can deduct up to $28,900 of the vehicle's cost under Section 179 in the first year of use, subject to the overall business income limitation. Additional depreciation may be available under bonus depreciation rules. However, if the vehicle is not used predominantly for business, these deductions may be limited or unavailable. Common vehicles that qualify include SUVs, trucks, and vans. It's important to keep detailed records of business versus personal use to substantiate the deduction.

Where to Put It on the Tax Form

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

Real World Example

A real estate agent purchases a new SUV with a GVWR of 6,500 pounds for $50,000. She uses it 80% for business, driving clients to properties and attending industry events. She can deduct $28,900 under Section 179 and apply bonus depreciation to further reduce her taxable income.

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. Maintain detailed mileage logs, receipts, and records of business use. Ensure the vehicle's GVWR is documented and keep purchase agreements. Be prepared to demonstrate the business necessity and predominant business use of the vehicle.

IRS Reference

IRS Publication 946, How to Depreciate Property; IRC §179

Relevant Industries

FreelancersReal Estate AgentsConsultantsConstructionLandscaping

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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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