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Is cars over 6000 pounds a business expense?

TL;DR

Vehicles over 6,000 pounds can be deductible as a business expense under certain conditions, primarily through Section 179 and bonus depreciation, but strict business-use requirements apply.

Detailed Answer

Vehicles over 6,000 pounds are eligible for larger deductions due to their classification as heavy vehicles. Under IRS rules, these vehicles can qualify for Section 179 expensing, allowing a business to deduct the full purchase price in the year the vehicle is placed in service, up to a limit. Additionally, bonus depreciation can be applied to further increase the deduction. However, the vehicle must be used more than 50% for business purposes to qualify, and personal use must be carefully documented and excluded. Common examples include SUVs, trucks, and vans used by contractors or real estate agents. If the vehicle is used less than 50% for business, depreciation must be calculated using the straight-line method over a five-year period.

Where to Put It on the Tax Form

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

Real World Example

A real estate agent purchases a new SUV weighing 6,500 pounds for $60,000. The SUV is used 80% for business. The agent elects to use Section 179 to deduct $25,000 (the limit for SUVs) and applies bonus depreciation to deduct an additional portion of the remaining cost, maximizing the deduction in the first 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 purchase price by this percentage to determine the deductible amount. Apply Section 179 and bonus depreciation limits accordingly.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain detailed mileage logs, purchase receipts, and documentation of business use. Keep records for at least three years. Ensure personal use is minimal and well-documented to avoid disallowance of the deduction.

IRS Reference

IRS Pub 946, IRC §179, IRC §168(k)

Relevant Industries

ContractorsReal Estate AgentsConsultantsFreelancers

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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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