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Is cars over 6000 pounds tax deductible?

TL;DR

Vehicles over 6,000 pounds may qualify for a larger Section 179 deduction, but they must be used predominantly for business purposes. Misconceptions often arise about the extent of the deduction and the need for business-use documentation.

Detailed Answer

Vehicles with a gross vehicle weight rating (GVWR) over 6,000 pounds can qualify for an accelerated depreciation deduction under Section 179 of the Internal Revenue Code. This allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year, up to a certain limit. However, the vehicle must be used more than 50% for business purposes to qualify. The maximum deduction for SUVs is capped at $28,900 for 2023, while other heavy vehicles may qualify for the full Section 179 limit. If the business use falls below 50%, the deduction may be recaptured. It's important to maintain detailed records of business versus personal use.

Where to Put It on the Tax Form

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

Real World Example

A real estate agent purchases a new SUV with a GVWR of 6,500 pounds for $50,000. She uses it 80% for business purposes. She can claim a Section 179 deduction of $28,900 for the year, provided she maintains logs to support the business use percentage.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, determine the percentage of business use by dividing business miles by total miles driven. Multiply this percentage by the cost of the vehicle to find the deductible amount, subject to the Section 179 limit.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs, purchase receipts, and evidence of business use. Logs should include dates, miles driven, and purpose of each trip. Retain these records for at least three years after filing the tax return.

IRS Reference

IRS Publication 946, How to Depreciate Property; IRC §179

Relevant Industries

FreelancersReal Estate AgentsConsultantsConstructionDelivery Services

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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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