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Is suv over 6,000 lbs tax deductible?

TL;DR

An SUV over 6,000 lbs can be tax deductible if used for business purposes, subject to specific IRS guidelines.

Detailed Answer

The IRS allows a deduction for vehicles over 6,000 lbs under Section 179, which permits businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. To qualify, the SUV must be used more than 50% for business purposes. The deduction is subject to limits, such as a maximum deduction of $28,900 for SUVs in 2023. If the vehicle is used for both personal and business purposes, only the business portion is deductible.

Where to Put It on the Tax Form

Form 4562, Depreciation and Amortization, Part I for Section 179 deduction.

Real World Example

A real estate agent purchases an SUV weighing over 6,000 lbs for $60,000 and uses it 80% for business. They can deduct $28,900 under Section 179 in 2023.

Calculation Required

A calculation is required for this deduction.

Calculate the business use percentage of the vehicle and apply it to the purchase price to determine the deductible amount, subject to the Section 179 limit for SUVs.

Audit Risk & Documentation Tips

Maintain detailed mileage logs to substantiate business use percentage and keep purchase receipts. Be prepared to justify the business necessity of the vehicle to reduce audit risk.

IRS Reference

IRS Publication 946, How to Depreciate Property; IRS Section 179 Deduction

Relevant Industries

Small BusinessReal Estate AgentsConstructionConsultants

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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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