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

TL;DR

Vehicles over 6,000 pounds can be a valid tax write-off under Section 179, allowing for accelerated depreciation. However, the vehicle must be used for business purposes, and there are limits and conditions to consider.

Detailed Answer

The IRS allows businesses to deduct the cost of vehicles over 6,000 pounds through Section 179 and bonus depreciation. To qualify, the vehicle must be used more than 50% for business purposes. The deduction is limited to $28,900 for SUVs in 2023, but larger vehicles like trucks and vans may qualify for full expensing. The deduction cannot exceed the taxable income of the business, and any excess can be carried forward. Personal use of the vehicle must be excluded from the deduction, and accurate records of business use are essential.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Section 179 expense deduction.

Real World Example

A real estate agent purchases a 7,000-pound SUV for $50,000, using it 80% for business. They can deduct $28,900 under Section 179 in 2023, with the remaining cost depreciated over future years.

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 eligible deduction amount. Ensure the deduction does not exceed the Section 179 limit for SUVs.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed mileage logs, purchase receipts, and evidence of business use. Document any personal use separately to substantiate the business-use percentage claimed.

IRS Reference

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

Relevant Industries

Small Business OwnersReal Estate AgentsConstruction ContractorsFreelancers

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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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