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Is vehicles over 6000 lbs a business expense?

TL;DR

Vehicles over 6,000 lbs can be considered a business expense under certain conditions, allowing for significant tax deductions.

Detailed Answer

Vehicles over 6,000 lbs may qualify for a Section 179 deduction, allowing businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. However, the vehicle must be used more than 50% for business purposes. The deduction is limited to a maximum of $28,900 for SUVs, trucks, and vans in 2023. If the vehicle is used less than 100% for business, the deduction must be prorated based on the percentage of business use.

Where to Put It on the Tax Form

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

Real World Example

A construction company purchases a heavy-duty pickup truck weighing over 6,000 lbs and uses it 80% for business. The company can deduct 80% of the purchase price up to the limit of $28,900 under Section 179.

Calculation Required

A calculation is required for this deduction.

Calculate the business use percentage of the vehicle and apply it to the purchase price, ensuring it does not exceed the Section 179 limit for SUVs and similar vehicles.

Audit Risk & Documentation Tips

Maintain detailed mileage logs to substantiate the percentage of business use. Keep purchase receipts and records of the vehicle's weight and usage. Be prepared to justify the business necessity of the vehicle if audited.

IRS Reference

IRS Publication 946, How to Depreciate Property; Section 179 of the Internal Revenue Code

Relevant Industries

Small BusinessConstructionReal EstateTransportation

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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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