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Is business vehicle over 6000 pounds a business expense?

TL;DR

Yes, a business vehicle over 6,000 pounds can be a deductible business expense, but it must meet specific criteria for business use and depreciation limits under IRS rules.

Detailed Answer

A vehicle over 6,000 pounds can be deducted as a business expense if it is used for business purposes. The IRS allows for a Section 179 deduction, which permits immediate expensing of the vehicle's cost, subject to limits. For 2023, the maximum Section 179 deduction for SUVs is $28,900. Additionally, vehicles can be depreciated over time using the Modified Accelerated Cost Recovery System (MACRS). The vehicle must be used more than 50% for business purposes to qualify for these deductions. If the vehicle is used for both personal and business purposes, only the business-use percentage is deductible. For example, if a vehicle is used 70% for business, only 70% of the allowable deduction can be claimed.

Where to Put It on the Tax Form

Schedule C, Line 9 for car and truck expenses, and Form 4562 for depreciation and Section 179 deduction.

Real World Example

A real estate agent purchases a 7,000-pound SUV for $50,000 and uses it 80% for business. They can claim a Section 179 deduction up to $28,900 and depreciate the remaining cost over the vehicle's useful life, limited to the business-use percentage.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, determine the business-use percentage and apply it to the maximum allowable Section 179 deduction and depreciation. For example, if the vehicle is used 80% for business, multiply the Section 179 limit ($28,900) by 80% to find the deductible amount.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain detailed records such as mileage logs, purchase receipts, and documentation of business use. Keep a logbook or use a mileage tracking app to substantiate the business-use percentage. Ensure the vehicle's weight and business use are clearly documented.

IRS Reference

IRS Publication 463 and IRC §179

Relevant Industries

Small Business OwnersFreelancersConsultantsReal 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 15, 2025

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