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Is how to write off 6000 lb vehicle tax deductible?

TL;DR

Yes, 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.

Detailed Answer

Vehicles with a gross vehicle weight rating (GVWR) over 6,000 pounds can qualify for significant tax deductions. Under Section 179, you can deduct the full purchase price of qualifying vehicles used for business in the year they are placed in service, up to a limit. For 2023, the maximum deduction is $1,160,000, but this is reduced dollar-for-dollar by the amount over $2,890,000 in total equipment purchases. Additionally, Bonus Depreciation allows for a 100% deduction of the vehicle's cost in the first year, but this is scheduled to phase out in coming years. To qualify, the vehicle must be used more than 50% for business. If the vehicle is used less than 100% for business, the deduction must be prorated. Personal use does not qualify for these deductions.

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 with a GVWR of 6,500 pounds for $60,000 and uses it 80% of the time for business. They can deduct $48,000 (80% of $60,000) under Section 179, assuming they have not exceeded the annual limit for Section 179 deductions.

Calculation Required

A calculation is required for this deduction.

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

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs, purchase receipts, and records of business use. Ensure the vehicle's GVWR is documented and maintain evidence of business use, such as client visit logs or delivery records.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsConstruction ContractorsSales Professionals

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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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