If you're a business owner looking to buy a new vehicle for your company, you want something sturdy and reliable, like a big truck or SUV, to help with your work. There's good news about this business investment: The IRS has a special tax benefit called the Section 179 deduction.
This deduction lets you write off the cost of certain vehicles, like those over 6,000 pounds, from your taxes. This list of vehicles over 6,000 pounds that qualify for the deduction is important because it helps you know which vehicles you can buy to get that tax break.
Use this blog as a handy guide to make sure you make the most out of your money when buying a vehicle for your business.
What is Section 179 and how does it apply to the business use of my vehicle?
The Section 179 deduction allows businesses to immediately write off the cost of qualifying equipment and vehicles instead of spreading the depreciation over several years. This powerful tax incentive can significantly reduce your taxable income, making it easier to invest in the tools your business needs—including vehicles.
How the Section 179 Deduction Works for Business Vehicles
If you purchase a vehicle for business use, Section 179 lets you deduct part or all of its cost in the first year, depending on its weight and classification. However, the IRS sets specific rules for vehicles to prevent excessive deductions for luxury or personal-use cars. Here’s how it works:
- Passenger Vehicles (< 6,000 lbs. GVWR): These follow standard depreciation rules with a lower first-year deduction cap.
- Heavy Vehicles (Over 6,000 lbs. GVWR): SUVs, trucks, and vans that exceed 6,000 pounds Gross Vehicle Weight Rating (GVWR) qualify for a larger tax write-off for vehicles over 6,000 lbs. For 2025, the maximum Section 179 deduction for SUVs is $31,300, with the remaining cost depreciated over time.
- Work Trucks & Vans (>6,000 lbs. GVWR, Beds 6+ Feet Long): Vehicles that meet these criteria—such as certain cargo vans, heavy-duty pickups, and box trucks—may qualify for 100% Section 179 expensing, meaning you can deduct the full purchase price in the year you place them in service.
How does the Section 179 dedction work in2025?
The Section 179 deduction allows businesses to immediately expense the full cost of qualifying equipment and vehicles in the year they are placed into service, rather than spreading depreciation over several years. This provides an immediate tax benefit and helps preserve cash flow.
2025 Section 179 Deduction Limits
For the 2025 tax year, businesses can deduct up to $1,250,000 in qualifying purchases. However, once total equipment purchases exceed $3,130,000, the deduction begins to phase out, and it is completely eliminated at $4,380,000.
Additionally, businesses can take advantage of 40% bonus depreciation after reaching the Section 179 limit, further reducing taxable income.
How Section 179 Applies to Business Vehicles
Many business owners use Section 179 to write off vehicle purchases, but specific rules apply depending on the vehicle’s weight and usage:
- Passenger Vehicles (<6,000 lbs. GVWR): Limited deductions apply due to personal use restrictions.
- Heavy Vehicles (>6,000 lbs. GVWR): Trucks, vans, and SUVs exceeding 6,000 pounds Gross Vehicle Weight Rating (GVWR) may qualify for a significant tax write-off. The maximum Section 179 deduction for SUVs in 2025 is $31,300, with the remaining cost depreciated.
- Work Trucks & Vans (Beds 6+ Feet Long, >6,000 lbs. GVWR): These vehicles—such as cargo vans, box trucks, and certain pickups—are treated like equipment and can qualify for 100% immediate expensing under Section 179.
Business-Use Requirement & Carryover Rules
To qualify for Section 179 deduction for a vehicle, it must be used at least 50% for business. If business use falls below this threshold, the deduction is reduced proportionally.
Additionally, the deduction cannot exceed your business’s net taxable income. However, any unused portion carries forward to future tax years, ensuring businesses can still benefit when profitability allows.
Maximizing Section 179 Tax Savings in 2025
Businesses can combine Section 179 with bonus depreciation for maximum tax savings. Additionally, financing a vehicle or equipment purchase using Section 179 Qualified Financing allows businesses to take the full deduction while making lower upfront payments.
By strategically planning major purchases before December 31, 2025, businesses can optimize tax savings and maintain financial flexibility. Consult a tax professional to ensure compliance with IRS Section 179 deduction vehicle rules and maximize your potential write-offs.
Qualifying Vehicles over 6,000 Pounds (lbs)
List of Vehicles 6,000 pounds or more that Qualify for Tax Incentives in 2025:
Criteria for Qualifying Vehicles
The eligibility for tax incentives, such as the Section 179 deduction, for vehicles with a gross vehicle weight rating (GVWR) of 6,000 pounds or more is contingent upon several key criteria. First and foremost, the vehicle must have a GVWR of 6,000 pounds or higher.
However, simply meeting this weight threshold does not guarantee eligibility. The vehicle must also be used for business purposes, meaning it must be utilized primarily for business activities rather than personal use.
Furthermore, to qualify for tax incentives, the vehicle must be purchased and placed into service within the tax year for which the deduction is being claimed. This means that the vehicle must be acquired and actively used for business operations during the same tax year in which the deduction is sought.
Further Reading: Find heavy vehicles for big tax breaks in 2024!
How did the Section 179 tax deduction change from 2024 to 2025?
In 2025, businesses will notice a reduction in the available bonus depreciation, which has been a significant component of the Section 179 tax deduction in recent years. While the Section 179 deduction remains at a maximum of $1,220,000 in 2025, the bonus depreciation rate, which was set at 60% in 2024, will decrease to 40% in 2025. This change impacts the overall deductions businesses can claim on qualifying assets, including vehicles.
Can I get a tax write off for vehicle over 6,000 lbs?
Yes, you can get a tax write-off for a vehicle over 6,000 lbs if you use it for business purposes. The tax write-off is known as the Section 179 deduction, which allows you to deduct the cost of qualifying vehicles from your taxable income. However, there are a few factors to consider:
1. The vehicle must be used primarily for business purposes and not for personal use.
2. There is a limit on the total amount of the deduction, which changes each year.
Moreover, if the vehicle is financed, the deduction may be limited to the amount you actually paid during the tax year. It is important to keep detailed records and documentation to support your deductions.
Luxury Vehicles over 6,000 lbs and the Section 179 Deduction
While luxury vehicles are generally not eligible for the Section 179 deduction, there is an exception for SUVs and trucks that are used for business purposes. The IRS has set a limit on the depreciable value of luxury SUVs and trucks, which can still provide some tax benefits.
However, it's important to note that only vehicles that qualify as business vehicles, meeting the criteria outlined in the tax code, may qualify for a Section 179 deduction. This includes passenger vehicles, sport utility vehicles, and trucks used primarily for business purposes.
The deduction limit, which changes annually, dictates the maximum amount that can be deducted using a Section 179 deduction. Also, bonus depreciation allows for additional deductions on qualifying vehicles. To ensure compliance with current tax laws and maximize tax benefits, consulting with a qualified tax advisor or accountant is recommended.
It's important to note that vehicles must be used for business purposes more than 50% of the time and must be purchased and placed into service by December 31 of the tax year to claim the deduction.
Vehicle valuation experts and the IRS Section 179 deduction
When claiming the Section 179 deduction, it is wise to consult with a tax professional or vehicle valuation expert who can accurately assess the vehicle's value and ensure compliance with IRS guidelines. They can help determine the depreciable value and provide documentation to support the deduction.
Steps to claim the Section 179 vehicle deduction
- Determine Eligibility: Ensure that the vehicle meets the criteria outlined in the tax code that allows for the Section 179 deduction. This includes verifying that the vehicle is used primarily for business purposes, has a gross vehicle weight rating (GVWR) that qualifies, and was purchased and placed into service within the tax year.
- Gather Documentation: Collect all relevant documentation related to the vehicle, including purchase receipts, vehicle specifications (such as GVWR), and any other interactive PDF documents or records that support its business use
- Calculate Depreciation: Use IRS Form 4562 to calculate the depreciation deduction for the qualifying vehicle. This form helps determine the depreciable value of the vehicle and is crucial for accurately claiming the deduction.
- Consult a Tax Professional: It is advisable to consult with a tax professional or accountant who is familiar with Section 179 deductions and vehicle depreciation. They can provide guidance on completing Form 4562 and ensure compliance with IRS regulations.
- Complete Form 4562: Fill out IRS Form 4562 accurately, providing all necessary information about the vehicle and its depreciation. This form will be attached to your tax return when claiming the Section 179 deduction.
- File Your Tax Return: Include the completed Form 4562 along with your tax return, making sure to follow all instructions provided by the IRS for claiming the Section 179 deduction.
- Review for Accuracy: Before submitting your tax return, review all information and calculations to ensure accuracy and completeness. Any errors or discrepancies could lead to delays or complications with your tax filing.
- Keep Records: Maintain thorough records of the Section 179 deduction claim, including copies of Form 4562 and supporting documentation. These records will be important for tax preparation in subsequent years and in the event of an IRS audit.
2025 Section 179 tax deductions for small business owners
The Section 179 deduction is especially beneficial for small business owners, as it allows them to immediately deduct the full purchase price of qualifying vehicles instead of depreciating the value over several years. This can provide significant tax savings and help stimulate business growth.
Heavy vehicles with a gross vehicle weight rating (GVWR) that meets the criteria for Section 179 vehicles for 2025 are eligible for this deduction, provided they are used for business purposes more than 50% of the time. By taking advantage of this deduction, business owners can reduce their federal tax liability and offset the cost of vehicles rated for Section 179.
Keeping track of mileage for these vehicles can also provide additional tax benefits, making it essential for business owners to understand the potential savings available through Section 179 deductions in the first year they are used.
Further Reading: Boost your 2025 savings! Learn easy tax tricks for small businesses.
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