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Is cars over 6000lbs tax deductible?

TL;DR

Vehicles over 6,000 pounds can be tax-deductible under certain conditions, primarily through Section 179 and bonus depreciation, but they must be used for business purposes and meet specific IRS guidelines.

Detailed Answer

Vehicles with a gross vehicle weight rating (GVWR) over 6,000 pounds can qualify for a Section 179 deduction, allowing business owners to deduct the full purchase price in the year the vehicle is placed in service. 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 can be deducted. Additionally, bonus depreciation may apply, allowing for further deductions. It's important to note that luxury vehicle limits do not apply to vehicles over 6,000 pounds, but there are caps on the total deduction amount. Leased vehicles have different rules, and the deduction may be limited based on the lease terms.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation; Form 4562 for Section 179 and bonus depreciation.

Real World Example

A freelance photographer purchases a new SUV with a GVWR of 6,500 pounds for $50,000. The vehicle is used 80% for business. The photographer can claim a Section 179 deduction for 80% of the purchase price, amounting to $40,000, in the year the vehicle is placed in service.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, determine the business-use percentage of the vehicle. Multiply the purchase price by this percentage to find the deductible amount. For example, if the vehicle is used 80% for business, multiply the total cost by 0.80.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain detailed mileage logs to substantiate business use, purchase receipts, and records of any personal use. Keep documentation for at least three years after filing the tax return to defend the deduction if audited.

IRS Reference

IRS Pub 946, 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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