Checkmark iconCan I Write This Off?

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

TL;DR

Yes, vehicles over 6,000 lbs can be a valid tax write-off under Section 179 and bonus depreciation rules, but they must be used for business purposes and meet specific criteria.

Detailed Answer

Vehicles over 6,000 lbs can qualify for a significant tax deduction under IRS Section 179, which allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. To qualify, the vehicle must be used more than 50% for business purposes. The deduction is limited to the business-use percentage of the vehicle. Additionally, bonus depreciation may apply, allowing further deductions. However, personal use of the vehicle must be carefully documented and excluded from the deduction calculation. Common misconceptions include assuming any large vehicle automatically qualifies without considering the business-use requirement.

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 $60,000. The vehicle is used 80% for business purposes. The agent can deduct $48,000 (80% of $60,000) under Section 179, assuming they meet all other requirements.

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 the vehicle's cost by this percentage to find the deductible amount.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs, purchase receipts, and records of business use. Document the percentage of business versus personal use to substantiate the deduction.

IRS Reference

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

Relevant Industries

Real Estate AgentsConstructionLandscapingConsultants

Popular Related Pages

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

Back to Search