Can I Write Off My Truck If I Use It for Work?

Using a truck for work can provide significant tax benefits, but deductions depend on how and why the vehicle is used. The IRS has strict guidelines on what qualifies as a business expense, making it essential to understand the rules before claiming deductions.

There are two primary ways to calculate vehicle-related deductions: the standard mileage rate and actual expenses. Depreciation also plays a role in maximizing tax savings. Keeping accurate records is critical to supporting claims in case of an audit.

Qualifications for Deducting Work-Related Truck Use

To deduct truck expenses, the IRS requires that the vehicle be used for business beyond commuting. Driving between home and a regular workplace does not qualify. However, miles driven to transport tools, equipment, or materials necessary for a job may be deductible. Contractors, landscapers, and delivery drivers often meet the criteria since their trucks are essential to their work.

The type of truck also affects eligibility. Heavy-duty trucks with a gross vehicle weight rating (GVWR) over 6,000 pounds may qualify for more favorable tax treatment under Section 179 of the Internal Revenue Code, allowing for accelerated depreciation. Lighter trucks can still be deducted but may face stricter limits on depreciation and expense deductions. The IRS also considers whether the vehicle is used exclusively for business or has mixed personal and work use, which affects the percentage of expenses that can be written off.

Self-employed individuals and small business owners generally have more flexibility in deducting truck expenses. Employees, however, typically cannot deduct vehicle costs unless they are self-employed or independent contractors. The Tax Cuts and Jobs Act of 2017 eliminated unreimbursed employee business expense deductions for most workers.

Methods for Calculating Work Expenses

The IRS allows two primary methods for deducting truck expenses: the standard mileage rate and actual expenses. Each has advantages depending on fuel costs, maintenance, and the percentage of time the truck is used for work.

The standard mileage rate is a simplified option that calculates deductions based on a fixed amount per mile driven for business purposes. For 2024, the IRS set this rate at 67 cents per mile. This method includes fuel, maintenance, insurance, and depreciation in the per-mile calculation, eliminating the need to track individual costs. It is often beneficial for those who drive extensively for work but have relatively low operating expenses. However, to use this method, the vehicle must be owned or leased and cannot have been previously depreciated using the actual expense method.

The actual expense method requires tracking all costs associated with operating the truck for business, including gas, oil changes, repairs, insurance, registration fees, and loan interest if the vehicle is financed. Only the portion of these expenses related to work use is deductible, requiring precise records of business versus personal miles. This method is often more beneficial for trucks with high maintenance costs or those used predominantly for work.

Depreciation Tactics for Your Vehicle

Depreciation allows businesses and self-employed individuals to recover the cost of a truck over time through tax deductions. The method chosen affects how quickly deductions can be claimed.

For trucks that qualify, Section 179 permits an immediate deduction of up to $1,220,000 in 2024 for eligible business assets, including vehicles. This can significantly reduce taxable income in the year of purchase but is subject to a phase-out threshold of $3,050,000. If total asset purchases exceed this limit, the deduction is gradually reduced. Businesses expecting high future earnings may prefer to spread deductions over multiple years instead of taking a large upfront write-off.

Bonus depreciation, currently set at 60% in 2024, provides another accelerated option. Unlike Section 179, this deduction is not capped by business income, meaning it can create a net operating loss that carries forward. This method is particularly useful when purchasing multiple vehicles or other depreciable assets in the same year. However, bonus depreciation is scheduled to decrease annually, phasing out completely by 2027 unless Congress extends it.

For a more gradual approach, the Modified Accelerated Cost Recovery System (MACRS) assigns a five-year recovery period for most business vehicles. Under MACRS, the double-declining balance method allows higher deductions in the early years before switching to straight-line depreciation. This approach balances immediate tax benefits with longer-term write-offs, making it useful for businesses that want consistent deductions over time.

Recordkeeping Essentials

Thorough documentation is necessary to substantiate vehicle-related tax deductions and withstand potential IRS scrutiny. Proper records should capture not just mileage but also trip purpose, destination, and the business relationship to the expense. IRS Publication 463 specifies that contemporaneous records—those kept at or near the time of travel—hold more weight in an audit than reconstructed logs created later. Digital mileage tracking apps like MileIQ and Everlance can automate this process, reducing the risk of missing or inaccurate data.

Beyond mileage logs, receipts and invoices for fuel, maintenance, insurance, and registration should be retained to justify claimed expenses. The IRS requires documentation to include the amount, date, and vendor name, meaning credit card statements alone are insufficient without detailed receipts. If the truck is financed or leased, loan agreements or lease contracts must also be kept, as interest deductions or lease payments may factor into tax filings. In cases where a business reimburses an employee or contractor for vehicle expenses, an accountable plan under IRS regulations ensures that reimbursements remain non-taxable.