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Is what vehicles are over 6000 lbs a business expense?

TL;DR

Vehicles over 6,000 lbs can be a deductible business expense under certain conditions, primarily through Section 179 and bonus depreciation, but must be used predominantly for business purposes.

Detailed Answer

Vehicles with a gross vehicle weight rating (GVWR) over 6,000 lbs may qualify for a Section 179 deduction, allowing businesses to deduct the full purchase price in the year the vehicle is placed in service, subject to limits. To qualify, the vehicle must be used more than 50% for business. The deduction is limited to the business-use percentage of the vehicle. Additionally, bonus depreciation may be applied to further reduce taxable income. However, luxury vehicle limits do not apply to these heavier vehicles, making them more attractive for tax purposes. It's important to note that personal use of the vehicle must be excluded from the deduction calculation.

Where to Put It on the Tax Form

Schedule C, Line 13 for depreciation or Section 179 deduction; Form 4562 for detailed reporting.

Real World Example

A real estate agent purchases a new SUV with a GVWR of 6,500 lbs for $60,000. The vehicle is used 80% for business. The agent can claim a Section 179 deduction of $48,000 (80% of $60,000) in the year of purchase, reducing taxable income significantly.

Calculation Required

A calculation is required for this deduction.

Calculate the business-use percentage by dividing the business miles by total miles driven. Multiply this percentage by the vehicle's purchase price to determine the deductible amount under Section 179.

Audit Risk & Documentation Tips

Moderate audit risk. Maintain detailed mileage logs, purchase receipts, and evidence of business use, such as client meeting records or delivery logs. Ensure personal use is clearly separated and documented.

IRS Reference

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

Relevant Industries

Small Business OwnersFreelancersReal Estate AgentsConstruction Contractors

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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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