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Is cars over 6000 pounds a valid tax write-off?

TL;DR

Vehicles over 6,000 pounds can be eligible for a tax deduction under certain conditions, primarily through the Section 179 deduction.

Detailed Answer

Vehicles with a gross vehicle weight rating (GVWR) over 6,000 pounds 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, there are limits; for instance, the maximum deduction for SUVs is capped at $25,000. The vehicle must be used more than 50% for business purposes to qualify, and the deduction is reduced proportionally if the vehicle is used for personal purposes.

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 new pickup truck with a GVWR of 7,000 pounds for $50,000. The truck is used 80% for business. The company can deduct $25,000 under Section 179, and the remaining cost may be depreciated over the vehicle's useful life.

Calculation Required

A calculation is required for this deduction.

Calculate the percentage of business use 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 for SUVs if applicable.

Audit Risk & Documentation Tips

Maintain detailed mileage logs and records of business use to substantiate the deduction. Keep purchase invoices and ensure the vehicle's GVWR is documented. Be prepared to provide evidence of business use if audited.

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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