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

TL;DR

Yes, an SUV over 6,000 pounds can be a valid tax write-off under certain conditions, primarily through the Section 179 deduction and bonus depreciation, but it must be used for business purposes and meet specific IRS criteria.

Detailed Answer

An SUV over 6,000 pounds can qualify for a Section 179 deduction, allowing a business to deduct the full purchase price of the vehicle in the year it is placed in service, up to a limit. The vehicle must be used more than 50% for business purposes. Additionally, bonus depreciation may apply, allowing further deductions. However, personal use of the vehicle must be excluded, and accurate records must be kept to substantiate the business use percentage. For example, if an SUV is used 70% for business, only 70% of the purchase price can be deducted. The vehicle must be new to the taxpayer and not previously used by them.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Section 179 expenses; Form 4562 for detailed depreciation and amortization calculations.

Real World Example

A real estate agent purchases an SUV for $65,000, which is over 6,000 pounds. The vehicle is used 80% for business purposes. The agent can deduct 80% of the purchase price under Section 179, amounting to $52,000, provided the total Section 179 deduction does not exceed the business's taxable income.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, determine the business use percentage by dividing business miles by total miles driven. Multiply this percentage by the vehicle's purchase price to find the deductible amount. Ensure the total deduction does not exceed the Section 179 limit.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain detailed mileage logs, purchase receipts, and documentation of business use. Keep records of business meetings, client visits, and other business-related travel to substantiate the deduction. Ensure personal use is accurately recorded and excluded from the deduction.

IRS Reference

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

Relevant Industries

Real Estate AgentsContractorsConsultantsFreelancers

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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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