Can I Write This Off?

Is tax write off for vehicle over 6000 lbs a business expense?

TL;DR

Yes, a vehicle over 6,000 lbs can be a deductible business expense under Section 179 if used for business purposes, but there are specific conditions and limits that apply.

Detailed Answer

Vehicles 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, provided it is used more than 50% for business. However, there are limits; for example, the maximum deduction for SUVs is capped at $28,900 for 2023. The vehicle must be used for business purposes, and personal use must be accounted for separately. If the vehicle is not used predominantly for business, the deduction may be limited or disallowed. Additionally, the vehicle must be purchased and not leased to qualify for Section 179. Other vehicles like trucks and vans may have different 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 weighing 6,500 lbs for $50,000 in 2023. The agent uses the vehicle 80% for business, qualifying for a Section 179 deduction. They can deduct $28,900 in 2023, the maximum allowed for SUVs.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, determine the business-use percentage of the vehicle. Multiply the total cost by this percentage, then apply the Section 179 limit (e.g., $28,900 for SUVs in 2023).

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs, purchase receipts, and documentation of business use. Ensure personal and business use are clearly separated and documented. Maintain records for at least three years.

IRS Reference

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

Relevant Industries

FreelancersReal Estate AgentsConsultantsConstructionDelivery Services

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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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