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Is cars over 6000 lbs tax deductible?

TL;DR

Vehicles over 6,000 lbs can be eligible for a tax deduction under Section 179, allowing small businesses to deduct the full purchase price, but there are specific conditions and limits to consider.

Detailed Answer

Vehicles over 6,000 lbs are eligible for a Section 179 deduction, which allows 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. The maximum deduction for SUVs is capped at $28,900 for 2023, while other vehicles may qualify for the full Section 179 limit. The vehicle must be purchased and put into service in the same tax year to qualify. Personal use of the vehicle must be accounted for, and only the business-use portion is deductible. Vehicles not meeting the weight requirement or used less than 50% for business do not qualify for this deduction.

Where to Put It on the Tax Form

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

Real World Example

A freelance photographer purchases a new SUV weighing 6,500 lbs for $50,000, using it 80% for business. They can deduct $28,900 under Section 179 for 2023, plus depreciate the remaining business-use portion over subsequent years.

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. Apply the Section 179 limit to this amount.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain detailed mileage logs, purchase receipts, and business use documentation. Ensure the vehicle's weight meets the requirement and keep records of its business use percentage.

IRS Reference

IRS Publication 946 and IRC §179.

Relevant Industries

Small Business OwnersFreelancersReal Estate AgentsConsultantsConstruction 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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