Weight Rating (GVWR): Check the manufacturer VIN safety label on the driver's door jamb. Vehicles over 6,000 lbs GVWR qualify for significantly higher expensing limits than passenger sedans.
Business Use Requirement: The vehicle must be driven over 50% for verifiable business purposes to qualify for Section 179 and bonus depreciation.
SUV vs. Work Truck: Heavy SUVs (6,000–14,000 lbs) carry a Section 179 cap of $32,000. Cargo vans and pickup trucks with a cargo bed of at least 6 feet are exempt from the SUV limit.
Vehicle Acquisition Inputs
Must exceed 50% to claim expensing.
Federal bracket + state income tax rate.
First-Year Tax Impact
Depreciable Business Basis$65,000
Section 179 Deduction$65,000
Bonus Depreciation Applied$0
Total First-Year Deduction$65,000
Net Tax Cash Reduction
$22,750
Effective Net Asset Cost$42,250
Audit Protection Reminder
Maintain an IRS-Compliant Mileage Log
Section 179 audits require contemporaneous logs proving business percentage. Ensure every business trip is digitally documented.
Advertisement (728x90 In-Content)
Deductions are subject to IRS taxable income limits. Consult an accredited CPA or tax attorney for official filing.