How Heavy Does a Vehicle Have to Be to Write It Off?

The ability to deduct business vehicle expenses offers substantial tax savings. Rules are complex, with the “write-off” amount often linked to vehicle weight. Gross Vehicle Weight Ratings (GVWR) determine applicable tax treatment and how much can be expensed or depreciated.

Understanding Vehicle Weight Classifications for Tax Purposes

The Internal Revenue Service (IRS) uses the Gross Vehicle Weight Rating (GVWR) as a primary metric for classifying vehicles for tax purposes. GVWR represents the maximum operating weight of a vehicle, including its own weight, passengers, cargo, and fuel, as specified by the manufacturer. This rating is typically found on a label inside the driver’s side door jamb.

Vehicles exceeding 6,000 pounds GVWR generally qualify for more favorable depreciation and expensing rules. Common examples include large SUVs, pickup trucks, and commercial vans.

Accelerated Depreciation for Heavy Business Vehicles

Vehicles over 6,000 pounds GVWR, used primarily for business, qualify for accelerated depreciation. Methods like Section 179 expensing and bonus depreciation allow businesses to deduct a substantial portion, or even the full cost, in the first year. Eligibility requires acquisition and placement in service during the tax year, with over 50% business use.

Section 179 allows businesses to deduct the full purchase price of qualifying equipment, including heavy vehicles, up to certain limits. For 2025, the maximum Section 179 expense deduction is $1,250,000, with a phase-out beginning when total equipment purchases exceed $3,130,000. For heavy SUVs (6,001 to 14,000 pounds GVWR), a specific deduction cap of $31,300 applies. Other qualifying heavy vehicles may utilize the higher general Section 179 limits.

Bonus depreciation provides an additional first-year deduction for eligible property. For qualifying property acquired and placed in service in 2025, the bonus depreciation rate is 100%. Taxpayers can often combine Section 179 and bonus depreciation to maximize first-year deductions, with bonus depreciation applied after Section 179.

Depreciation Rules for Lighter Business Vehicles

For business vehicles with a GVWR of 6,000 pounds or less, such as most sedans and smaller SUVs, standard depreciation rules apply. These vehicles are subject to the Modified Accelerated Cost Recovery System (MACRS), classified as five-year property, meaning their cost is depreciated over five years.

The IRS imposes “luxury car” depreciation limits on lighter vehicles, capping the amount deductible each year, even if used entirely for business. For vehicles placed in service in 2025, the maximum first-year deduction is $12,200 without bonus depreciation, or $20,200 if bonus depreciation is applied. If a vehicle’s business use drops to 50% or less, additional restrictions apply, potentially limiting depreciation to the straight-line method.

Claiming Vehicle Deductions on Your Tax Return

Claiming vehicle deductions requires diligent record-keeping and proper reporting. Businesses must accurately determine the business use percentage of the vehicle, typically by maintaining mileage logs. This percentage is then applied to the vehicle’s cost and associated expenses to calculate the deductible amount.

The primary IRS form for reporting depreciation and Section 179 deductions is Form 4562, Depreciation and Amortization. Taxpayers use Part I to elect Section 179 expensing and Part II for bonus depreciation. Form 4562 also includes a section for listed property, which applies to vehicles used for both business and personal purposes.