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Is vehicles over 6000 lbs tax deductible?

TL;DR

Vehicles over 6,000 lbs can be tax deductible under Section 179, allowing for an immediate expense deduction, but there are specific conditions and limits to consider.

Detailed Answer

Vehicles over 6,000 lbs may qualify for a Section 179 deduction, which allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. However, the vehicle must be used more than 50% for business purposes to qualify. The deduction is limited to the business-use percentage of the vehicle, and the total deduction cannot exceed the annual Section 179 limit. Additionally, luxury vehicle limits may apply, and the vehicle must be purchased and placed in service during the tax year. If the vehicle is used less than 50% for business, depreciation must be used instead of Section 179. For example, a construction company purchasing a heavy-duty truck primarily for transporting materials may qualify, while a personal vehicle used occasionally for business would not.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Section 179 expense deduction; Form 4562 for depreciation and amortization.

Real World Example

A freelance photographer purchases a large SUV over 6,000 lbs for $70,000, using it 80% for business to transport equipment and clients. They can deduct $56,000 (80% of the purchase price) under Section 179, assuming they have enough taxable income to absorb the deduction.

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 purchase price by this percentage to find the deductible amount under Section 179.

Audit Risk & Documentation Tips

Audit risk is moderate. Keep detailed mileage logs, purchase receipts, and evidence of business use (e.g., client contracts, delivery logs). Ensure the vehicle is used more than 50% for business to qualify for Section 179.

IRS Reference

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

Relevant Industries

ConstructionReal EstateConsultingFreelancers

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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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