Can You Write Off Vehicles Over 6000 Pounds?

The tax treatment of vehicles weighing over 6,000 pounds Gross Vehicle Weight Rating (GVWR) often garners attention from business owners. These heavier vehicles may present opportunities for significant tax deductions that differ from those for standard passenger cars. Understanding the specific criteria and available methods for these deductions is a valuable part of a business’s financial planning.

Vehicle Eligibility and Business Use

For tax purposes, a “vehicle over 6,000 pounds” refers to its Gross Vehicle Weight Rating (GVWR), not its empty or curb weight. The GVWR is the maximum operating weight specified by the manufacturer, including the vehicle’s own weight, fuel, passengers, and cargo. This rating is typically found on a label inside the driver’s side door jamb. Common examples exceeding this threshold include many full-size sport utility vehicles (SUVs), most pickup trucks, and various commercial vans.

The IRS uses GVWR to determine eligibility for certain accelerated depreciation benefits. Vehicles with a GVWR of 6,000 pounds or less generally fall under different, more restrictive depreciation rules. Therefore, verifying the manufacturer’s specified GVWR is a necessary first step in assessing a vehicle’s potential for these deductions.

Establishing business use is a fundamental requirement for any vehicle tax deduction. The vehicle must be used primarily for business purposes, meaning over 50% of its total use must be for business activities. If a vehicle is used for both business and personal reasons, only the portion of its cost and associated expenses corresponding to its business use is deductible.

Failing to meet the minimum business use threshold of over 50% can result in the vehicle not qualifying for these specific accelerated depreciation methods. Accurately tracking how the vehicle is utilized throughout the tax year is important. Proper documentation of business versus personal mileage is a foundational element for substantiating any claims.

Understanding Accelerated Depreciation Options

Businesses acquiring qualifying heavy vehicles have access to specific accelerated depreciation methods for a more immediate recovery of the asset’s cost. These methods, primarily Section 179 deduction and bonus depreciation, enable businesses to deduct a substantial portion of a vehicle’s purchase price in the year it is placed into service. This immediate expensing can significantly reduce a business’s taxable income in the acquisition year.

The Section 179 deduction permits businesses to expense the full purchase price of qualifying equipment, including eligible vehicles, in the year they are put into use. Unlike traditional depreciation, which allocates an asset’s cost over its useful life, Section 179 provides an immediate write-off, subject to specific annual limits and overall spending caps.

Bonus depreciation offers another method for accelerating cost recovery. It allows businesses to deduct an additional first-year depreciation percentage on eligible property. Historically, bonus depreciation rates have varied, but recent legislative changes have impacted its application for the 2025 tax year and beyond. Both Section 179 and bonus depreciation provide a financial incentive for businesses to acquire new or used qualifying assets.

A key distinction between these two methods lies in their mechanics. Section 179 is an election a business chooses to take on specific assets, and it is limited by the business’s taxable income. Bonus depreciation, conversely, is generally automatic for eligible property unless a business opts out, and it can be claimed even if the business is not profitable. The optimal strategy for claiming deductions can vary depending on a business’s specific financial situation and asset acquisitions.

Claiming Your Deductions

To claim deductions for a heavy vehicle, accurately calculate the business use percentage. This percentage determines the deductible portion of the vehicle’s cost and associated expenses. It is calculated by dividing the total miles driven for business purposes by the total miles driven for all purposes (business and personal) during the tax year. For instance, if a vehicle travels 10,000 miles in a year, and 7,000 of those miles are for business, the business use percentage is 70%.

Once the business use percentage is established, it is applied to the vehicle’s cost for depreciation purposes. For the 2025 tax year, substantial changes have been enacted through the “One Big Beautiful Bill Act” (OBBBA) impacting Section 179 and bonus depreciation. The maximum Section 179 expense deduction has increased to $2,500,000, with a total equipment spending cap of $4,000,000 before the deduction begins to phase out. However, for heavy SUVs weighing between 6,001 and 14,000 pounds GVWR, a specific cap of $31,300 applies to the Section 179 deduction for 2025.

The OBBBA permanently restores 100% bonus depreciation for qualified property acquired and placed in service after January 19, 2025. This means that for eligible heavy vehicles acquired after this date, businesses can deduct the full cost not covered by Section 179. For property acquired earlier in 2025 (before January 20) or in 2024, the bonus depreciation rate is 40% for 2025 and 60% for 2024, respectively. Typically, Section 179 is applied first to the qualifying cost, and then bonus depreciation is applied to any remaining basis.

Meticulous record-keeping is paramount to substantiate these deductions in the event of an IRS inquiry. Businesses must maintain detailed logs of all vehicle usage, including the date of each trip, its destination, business purpose, and odometer readings. Additionally, records of purchase invoices, financing documents, and all vehicle-related expenses such as fuel, maintenance, insurance, and repairs should be diligently kept.

When preparing tax returns, businesses will report these deductions on IRS Form 4562, “Depreciation and Amortization.” This form is used to claim Section 179 expenses and any special depreciation allowances, and to provide information on the business use of listed property, including vehicles. Understanding the specific limits, phase-out rules, and the interaction between Section 179 and bonus depreciation for the relevant tax year is essential for accurate reporting.