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Is vehicles that weigh over 6000 lbs tax deductible?

TL;DR

Vehicles weighing over 6,000 lbs may qualify for a significant tax deduction under Section 179, allowing businesses to deduct the full purchase price in the year the vehicle is placed in service, subject to certain limits and conditions.

Detailed Answer

Vehicles with a gross vehicle weight rating (GVWR) over 6,000 lbs can be eligible for a Section 179 deduction, which allows 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 the business-use percentage of the vehicle. Additionally, luxury auto limits do not apply to these heavier vehicles, but there is a maximum deduction limit under Section 179, which is subject to change annually. If the vehicle is used less than 100% for business, only the business-use portion is deductible. For example, if a vehicle is used 70% for business, only 70% of the cost can be deducted under Section 179.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation and Section 179 expenses. Form 4562 is used to claim the Section 179 deduction.

Real World Example

A real estate agent purchases a new SUV with a GVWR of 6,500 lbs for $60,000. She uses it 80% for business purposes. Under Section 179, she can deduct $48,000 (80% of $60,000) in the year of purchase, assuming she meets all other requirements.

Calculation Required

A calculation is required for this deduction.

To calculate the deduction, determine the business-use percentage of the vehicle. Multiply the total cost of the vehicle by this percentage to find the deductible amount under Section 179. For example, if the vehicle costs $60,000 and is used 80% for business, the deductible amount is $60,000 x 0.80 = $48,000.

Audit Risk & Documentation Tips

Audit risk is moderate. Taxpayers should maintain detailed records of business use, including mileage logs, purchase receipts, and any financing agreements. It's important to document the business purpose of trips and keep a calendar or logbook to substantiate the business-use percentage.

IRS Reference

IRC §179, IRS Pub 946

Relevant Industries

FreelancersReal Estate AgentsConsultantsConstructionDelivery Services

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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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