Checkmark iconCan I Write This Off?

Is vehicles over 6000 pounds a business expense?

TL;DR

Vehicles over 6,000 pounds can be a deductible business expense under Section 179 and bonus depreciation rules, but they must be used primarily for business purposes, and there are specific limitations and requirements to consider.

Detailed Answer

The deduction for vehicles over 6,000 pounds is primarily available through Section 179 and bonus depreciation. Under Section 179, businesses can deduct the full purchase price of qualifying equipment purchased or financed during the tax year, up to a specified limit. For vehicles over 6,000 pounds but less than 14,000 pounds, the maximum Section 179 deduction is limited (e.g., $28,900 for SUVs in 2023). Additionally, bonus depreciation allows for a 100% deduction of the cost of qualifying property, including heavy vehicles, in the year they are placed in service. However, the vehicle must be used more than 50% for business purposes to qualify. If the business use falls below this threshold, the deduction may be reduced or recaptured. Common misconceptions include assuming all large vehicles automatically qualify or that personal use is permissible without affecting the deduction.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Line 20a for car and truck expenses. Form 4562 is used to claim Section 179 and bonus depreciation.

Real World Example

A real estate agent purchases a new SUV weighing 6,500 pounds for $60,000. The vehicle is used 80% for business purposes. The agent can claim a Section 179 deduction up to the limit for SUVs and apply bonus depreciation on the remaining cost, provided the vehicle is placed in service during the tax year.

Calculation Required

A calculation is required for this deduction.

Calculate the business-use percentage by dividing business miles by total miles driven. Apply this percentage to the vehicle's cost to determine the deductible amount. For example, if the SUV cost $60,000 and is used 80% for business, the business-use portion is $48,000. Apply Section 179 and bonus depreciation limits accordingly.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs, purchase receipts, and documentation of business use. Ensure that the vehicle is used more than 50% for business to avoid recapture of deductions. Maintain records for at least three years after the tax return is filed.

IRS Reference

IRS Publication 946 and IRC §179.

Relevant Industries

Real Estate AgentsConstructionConsultantsFreelancersLandscaping

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 15, 2025

Back to Search