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Is 6000 lb vehicles tax deductible?

TL;DR

Vehicles over 6,000 pounds may qualify for a significant tax deduction under Section 179, but they must be used predominantly for business purposes. Misunderstanding the business-use requirement is a common pitfall.

Detailed Answer

The cost of vehicles over 6,000 pounds can be deducted using Section 179, allowing a business to deduct the full purchase price in the year the vehicle is placed in service. To qualify, the vehicle must be used more than 50% for business purposes. If the business use falls below this threshold, the deduction may be recaptured. Additionally, the vehicle must be purchased and placed in service by the end of the tax year. For example, a business owner purchasing a heavy SUV for $60,000 and using it 70% for business can deduct $42,000 under Section 179. However, if the business use drops to 40% in a subsequent year, part of the deduction may need to be recaptured.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Section 179 deduction.

Real World Example

A freelance photographer purchases a 6,500-pound SUV for $50,000 in 2023, using it 80% for business. They can deduct $40,000 under Section 179 on their Schedule C, reducing their taxable income significantly for that year.

Calculation Required

A calculation is required for this deduction.

Calculate the business-use percentage by dividing business miles by total miles driven. Multiply the vehicle's cost by this percentage to determine the deductible amount under Section 179.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain detailed mileage logs, purchase receipts, and documentation showing business use. Be prepared to demonstrate the business necessity of the vehicle and its predominant use.

IRS Reference

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

Relevant Industries

Small Business OwnersFreelancersReal Estate AgentsConstruction 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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