How to Write Off a 6,000 lb Vehicle for Your Business

Businesses often seek ways to reduce their taxable income, and deducting the cost of vehicles used for business purposes offers a significant opportunity. Certain vehicles exceeding a specific weight threshold can qualify for substantial tax deductions through accelerated depreciation. These provisions allow businesses to recover the cost of eligible vehicles more quickly, helping manage cash flow and reduce the overall tax burden. Understanding these rules is important for business owners looking to optimize their tax strategy.

Understanding the Heavy Vehicle Tax Deduction

Businesses can utilize specific tax provisions to deduct a significant portion of the cost of heavy vehicles. Section 179 of the Internal Revenue Code allows businesses to expense the full purchase price of qualifying equipment, including certain vehicles, in the year they are placed in service. A key factor for vehicles is the 6,000-pound Gross Vehicle Weight Rating (GVWR) threshold, which exempts them from depreciation limits that apply to lighter passenger vehicles.

Bonus depreciation is another valuable deduction that complements Section 179. It allows businesses to deduct a percentage of the cost of qualifying new or used property in the first year it is placed in service. For the 2025 tax year, the bonus depreciation rate is 40%. This deduction can be applied even if the Section 179 limit has been reached.

These two deductions can work together to maximize the write-off for a heavy vehicle. Businesses typically apply Section 179 first, then bonus depreciation to the remaining cost. This combination allows for a more rapid recovery of the vehicle’s cost, significantly impacting a business’s tax liability in the acquisition year.

Eligibility Requirements

For a vehicle to qualify for these tax deductions, it must meet specific criteria regarding its weight and use. The “6,000-pound rule” refers to the vehicle’s Gross Vehicle Weight Rating (GVWR), not its curb weight. The GVWR is the maximum operating weight of a vehicle, including its weight, passengers, fuel, and cargo, and is typically found on a label inside the driver’s side door. Many larger SUVs, full-size pickup trucks, and vans commonly meet this GVWR requirement.

The vehicle must be used primarily for business purposes, meaning more than 50% of its use must be for business. Both new and used vehicles can qualify for Section 179 and bonus depreciation, provided the used vehicle is “new to you.”

The vehicle must be “placed in service” during the tax year the deduction is claimed. This means the vehicle must be ready and available for its assigned business function, even if not actually used. The business must also have sufficient taxable income to fully utilize the Section 179 deduction, as it cannot create a net operating loss.

Maximizing Your Deduction

For the 2025 tax year, the maximum Section 179 expense deduction is $1,250,000. This deduction begins to phase out when total equipment purchases for the year exceed $3,130,000. The Section 179 deduction for sport utility vehicles over 6,000 pounds GVWR is capped at $31,300 for 2025.

After applying the Section 179 deduction, businesses can utilize bonus depreciation. For 2025, the bonus depreciation rate is 40%. This percentage applies to the remaining cost of the vehicle after any Section 179 deduction.

For instance, if a qualifying heavy SUV costing $60,000 is used 60% for business, the business-use portion is $36,000. A business could claim the $31,300 Section 179 cap for heavy SUVs, leaving $4,700 of the business-use cost. Bonus depreciation of 40% on this remainder would yield an additional $1,880, resulting in a total first-year deduction of $33,180.

The percentage of business use is a significant factor in calculating the deductible amount. Accurate tracking of business versus personal mileage is essential to determine this percentage.

Maintaining Proper Records

Accurate and thorough record-keeping is essential to substantiate vehicle deductions during an IRS inquiry. Detailed mileage logs are a primary requirement to support the reported business use percentage. These logs should distinguish between business and personal miles, noting the date, destination, purpose, and mileage for each business trip. While manual logs are an option, various mobile applications can simplify this tracking process.

Beyond mileage, businesses must retain comprehensive purchase documentation for the vehicle. This includes the purchase invoice, any loan or financing agreements, and proof of payment. These documents establish the vehicle’s cost basis, which is fundamental to calculating allowable depreciation. Maintaining records of maintenance and repair expenses is also advisable, especially if a business chooses to deduct actual vehicle expenses rather than using the standard mileage rate.

Any other supporting documents related to the vehicle’s business use, such as receipts for fuel, oil, and insurance, should be kept organized. These records collectively provide a clear audit trail and demonstrate compliance with tax regulations.