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Is cars over 6000 lbs a business expense?

TL;DR

Vehicles over 6,000 lbs can be deductible as a business expense under certain conditions.

Detailed Answer

Vehicles with a gross vehicle weight rating (GVWR) over 6,000 lbs may qualify for a Section 179 deduction, allowing businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. However, the vehicle must be used more than 50% for business purposes. If the vehicle is used less than 100% for business, only the business-use percentage of the cost is deductible. Additionally, there are limits on the amount that can be deducted under Section 179 for vehicles, and luxury vehicle limitations may apply.

Where to Put It on the Tax Form

Form 4562, Depreciation and Amortization, Part I for Section 179 deduction.

Real World Example

A construction company purchases a heavy-duty pickup truck with a GVWR of 7,000 lbs for $50,000. The truck is used 80% for business purposes. The company can claim a Section 179 deduction of $40,000 (80% of $50,000) in the year of purchase.

Calculation Required

A calculation is required for this deduction.

Calculate the business-use percentage of the vehicle's cost and apply the Section 179 limits to determine the deductible amount.

Audit Risk & Documentation Tips

Maintain detailed mileage logs and records of business use to substantiate the deduction. Keep purchase receipts and any financing agreements. Be aware of the IRS's scrutiny on vehicle deductions, especially if claiming a high percentage of business use.

IRS Reference

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

Relevant Industries

Small BusinessConstructionReal EstateTransportation

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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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