Can I Write Off My Truck as a Farm Expense?

Deducting the cost of a truck used for your farming operation can provide a tax benefit. The Internal Revenue Service (IRS) allows farmers to write off vehicle expenses, but this deduction is contingent upon meeting specific rules and maintaining detailed records. The process involves qualifying the vehicle, choosing a calculation method, and correctly reporting the deduction.

Qualifying Your Truck as a Farm Vehicle

For a truck to be considered a farm vehicle for tax purposes, its use must align with the IRS definition of a farming business. This includes hauling feed, seed, or fertilizer, transporting livestock, and driving to suppliers or to sell farm products. Personal trips, such as commuting from your home to the farm or running non-farm errands, do not count as farm use.

A primary requirement for claiming certain accelerated depreciation methods is the business use test, which requires the truck to be used more than 50% of the time for qualified business purposes. If business use falls to 50% or less, you are restricted to a less advantageous depreciation method. For farmers who use a vehicle for both business and personal reasons, a safe harbor rule allows for claiming 75% business use without extensive allocation records, provided the vehicle was used during most of the normal business day in connection with farming.

The types of vehicles that can qualify are those suitable for farm work, such as pickup trucks, heavy-duty models, and certain heavy sport utility vehicles (SUVs) or cargo vans. The IRS is less concerned with the specific make or model and more focused on how the vehicle serves the operational needs of the farm.

Methods for Calculating the Deduction

Once your truck qualifies, you must choose one of two methods to calculate the deductible expenses: the standard mileage rate or the actual expense method. You must select one method for a vehicle and generally stick with it, as the best choice depends on your record-keeping and which option yields a larger deduction.

The standard mileage rate allows you to deduct a set amount for each mile driven for farm business. For 2025, the rate is 70 cents per mile, which covers variable operating costs like gasoline and oil. To use this method, you must maintain a log of your business mileage. This option is not available if you operate five or more vehicles simultaneously in your farm business.

The actual expense method involves tracking and deducting the specific costs of operating the truck for farm use, such as fuel, oil, repairs, tires, insurance, and registration fees. You can only deduct the portion of these expenses that corresponds to your business use percentage. Depreciation, a separate deduction, is also calculated under this method.

Understanding Vehicle Depreciation Rules

Depreciation is the process of recovering your truck’s cost over time and is a component of the actual expense method. It allows you to deduct a portion of the vehicle’s purchase price each year it is used in your farming business. The IRS provides several depreciation options.

The Section 179 deduction allows you to expense a significant portion or the full cost of the vehicle in the year you place it in service. This provides an immediate tax benefit rather than spreading the deduction over several years. However, there are annual limits to the total amount you can deduct, and specific caps apply to certain vehicles like heavy SUVs.

Bonus depreciation is another form of accelerated depreciation that allows for an additional first-year deduction. For 2025, bonus depreciation is set at 40% of the property’s adjusted basis, and this percentage is scheduled to decrease in subsequent years. This can be taken in addition to the regular depreciation allowance.

If you do not take the Section 179 or bonus depreciation deductions, you will recover the truck’s cost over several years using the Modified Accelerated Cost Recovery System (MACRS). MACRS assigns property to classes that determine the depreciation period. Cars and light trucks are classified as 5-year property, while heavy vehicles with a GVWR over 6,000 pounds often receive more favorable treatment, allowing for a larger write-off in the initial years.

Required Records and Documentation

To substantiate your truck expense deduction, you must maintain accurate records, as the IRS can disallow deductions that are not supported by adequate proof. The specific documentation required depends on whether you use the standard mileage rate or the actual expense method.

If you choose the standard mileage rate, you must keep a reliable mileage log. This log should document:

• The date of each trip
• Your starting and ending mileage
• The total miles driven
• The business purpose of the trip

While a simple notebook can suffice, many farmers use logbooks or mobile apps for accuracy.

For those using the actual expense method, you must keep all receipts and invoices for every vehicle-related expense you intend to claim. This includes documentation for:

• Fuel purchases
• Oil changes
• Repairs
• New tires
• Insurance premiums
• Registration fees

You will also need the vehicle’s bill of sale or purchase agreement to establish its cost basis for calculating depreciation.

Reporting the Deduction on Your Tax Return

After calculating your deduction, you must report it on the correct tax forms. The primary form for reporting farm income and expenses is Schedule F (Profit or Loss From Farming), which attaches to your Form 1040.

If you use the standard mileage rate, you will report the total calculated deduction on the designated line for car and truck expenses on Schedule F. The calculation is to multiply your total business miles for the year by the applicable standard mileage rate.

When using the actual expense method, you will report the total of your operating costs on the same car and truck expense line of Schedule F. The depreciation portion of your deduction requires a separate form. You must complete and file Form 4562, Depreciation and Amortization, to report any depreciation. The total depreciation calculated on Form 4562 is then carried over to the appropriate line on Schedule F.