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Is how to write off 6000 lb vehicle a valid tax write-off?

TL;DR

Yes, a vehicle over 6,000 pounds can be a valid tax write-off under certain conditions, primarily through Section 179 and bonus depreciation, but it must be used for business purposes.

Detailed Answer

The IRS allows businesses to deduct the cost of a vehicle over 6,000 pounds used for business purposes through Section 179 and bonus depreciation. To qualify, the vehicle must be used more than 50% for business. Section 179 allows you to deduct up to $28,900 (as of 2023) of the vehicle's cost in the year it is placed in service. Additionally, bonus depreciation allows you to deduct a significant portion of the remaining cost. However, personal use of the vehicle must be excluded, and proper records must be maintained. Vehicles like SUVs, trucks, and vans often qualify, but luxury vehicles may have additional limits.

Where to Put It on the Tax Form

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

Real World Example

A real estate agent purchases a new SUV for $60,000, which is over 6,000 pounds, and uses it 80% for business. They can deduct $28,900 under Section 179 and apply bonus depreciation to the remaining business-use portion of the vehicle's cost.

Calculation Required

A calculation is required for this deduction.

Calculate the business-use percentage by dividing business miles by total miles driven. Apply this percentage to the vehicle's cost to determine the deductible amount under Section 179 and bonus depreciation.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs, purchase receipts, and documentation of business use. Ensure personal use is clearly separated from business use and maintain records for the entire period of ownership.

IRS Reference

IRS Publication 946, IRS Code Section 179

Relevant Industries

FreelancersReal 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 15, 2025

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