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Is suv over 6000 lbs a valid tax write-off?

TL;DR

Yes, an SUV over 6,000 lbs can be a valid tax write-off under Section 179, provided it is used for business purposes. However, there are specific requirements and limits to consider.

Detailed Answer

An SUV over 6,000 lbs 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. To qualify, the vehicle must be used more than 50% for business purposes. The deduction is limited to $28,900 for SUVs in 2023, and the vehicle must be new or used and purchased (not leased). If the vehicle is used less than 100% for business, the deduction must be prorated. For example, if the business use is 70%, only 70% of the deduction is allowed. Additionally, the total Section 179 deduction limit for all qualifying property is $1,160,000 for 2023, with a phase-out threshold of $2,890,000.

Where to Put It on the Tax Form

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

Real World Example

A real estate agent purchases a new SUV for $50,000, which is over 6,000 lbs, and uses it 80% for business. They can claim a Section 179 deduction of $28,900, prorated to $23,120 (80% of $28,900) in the year of purchase.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, determine the business-use percentage of the vehicle. Multiply the Section 179 limit for SUVs ($28,900) by the business-use percentage. For example, if the vehicle is used 80% for business, the deduction is $28,900 x 0.80 = $23,120.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed records of business use, including mileage logs, receipts, and a calendar of business activities. Ensure the vehicle's weight and business use percentage are well-documented. Retain purchase contracts and any financing agreements.

IRS Reference

IRC §179, IRS Pub 946

Relevant Industries

Small Business OwnersReal Estate AgentsConsultantsContractors

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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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