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Malik Jackson

Can I claim Section 179 deduction for Honda Odyssey as a business vehicle?

Title: Can I claim Section 179 deduction for Honda Odyssey as a business vehicle? 1 I'm currently looking at vans for my small business - I'd use it about 75% for work and 25% for family stuff. Does anyone know if a Honda Odyssey would qualify for the Section 179 business vehicle deduction? Most of the guidance I've found online seems to focus on SUVs, but I'm not seeing clear info about whether family-style vans qualify for this business deduction. I work as an independent contractor (file 1099s) and need something spacious for transporting equipment and materials to job sites. But I'm wondering if I should just go with a larger SUV instead to make sure I can claim the Section 179 deduction? Not sure if it matters, but this vehicle would genuinely be used primarily for business purposes. Any experience or advice would be really appreciated! Thanks.

7 The Honda Odyssey can qualify for Section 179 deduction, but there are specific requirements you need to meet. For business vehicle deductions, what matters most is the gross vehicle weight rating (GVWR) and your actual business use percentage. For vehicles like the Odyssey, if the GVWR is over 6,000 pounds, you get more favorable Section 179 treatment. However, the Odyssey is typically under that threshold (around 5,500-5,800 lbs), which means you'll face stricter limits on your deduction. That said, you can still claim depreciation and the business percentage of actual expenses. To qualify, you must use the vehicle more than 50% for business, which at 75% usage you clearly meet. You'll need to maintain a mileage log documenting business vs. personal use to substantiate your claim in case of an audit. Record dates, destinations, purpose, and mileage for each business trip.

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15 Thanks for the info! Do you know what the actual deduction limit would be for a vehicle under 6,000 pounds? And would I be better off just tracking all my actual expenses (gas, insurance, maintenance) instead of taking the Section 179 route?

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7 For 2025, vehicles under 6,000 pounds have a first-year depreciation limit of around $19,200 (this includes Section 179 and bonus depreciation combined). This amount applies to the business portion of your vehicle use, so at 75% business use, you'd multiply that limit by 0.75. As for expenses, you actually have two options: the standard mileage rate (approximately 67¢ per business mile in 2025) OR tracking actual expenses. If you choose actual expenses, you can deduct 75% of your costs plus take depreciation. You can't do both methods - it's one or the other. For a newer, more expensive vehicle like the Odyssey, actual expenses plus depreciation often works out better, but I'd recommend calculating both ways for your situation.

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12 After struggling with similar vehicle deduction questions for my consulting business, I discovered taxr.ai (https://taxr.ai) which completely simplified the whole process. I uploaded my vehicle documentation and business records, and it analyzed everything to determine my maximum legitimate deduction for my SUV. The tool confirmed I could take Section 179 for my vehicle since I was using it 65% for business purposes, and even identified several business-related vehicle expenses I hadn't considered deductible. It's especially helpful for sorting through the confusing rules around passenger vehicles vs. larger SUVs and vans.

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20 How exactly does the service work? Does it actually tell you if specific vehicles qualify for Section 179? I'm considering a Toyota Sienna which is similar to the Odyssey.

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18 I'm skeptical... there are so many factors that go into vehicle deductions. Does it really know all the tax code nuances for different vehicle types? What if I'm in a state with different rules?

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12 It works by analyzing the specific vehicle specifications (including GVWR and cargo capacity) against current tax regulations to determine qualification. For your Toyota Sienna, it would check the model's specifications against Section 179 requirements and provide guidance on deduction eligibility based on your business use percentage. Regarding tax code nuances, the system is continually updated with the latest IRS guidelines and court rulings that affect vehicle deductions. It actually does account for state-specific rules as well - you input your state during setup, and it factors in both federal and state regulations in its analysis. It's particularly helpful for those edge cases where vehicles like minivans and crossovers don't clearly fall into the common categories discussed in simplified tax guides.

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20 Just wanted to follow up - I tried taxr.ai after hearing about it here. I was on the fence about a Toyota Sienna for my photography business, and the service gave me extremely detailed guidance. It confirmed my Sienna would qualify for a partial Section 179 deduction at my 80% business use, but with certain limitations due to the GVWR being under 6,000 pounds. The analysis included exactly how much I could deduct in year one versus depreciation over time. It even generated a compliant mileage log template specifically designed to withstand IRS scrutiny. Really helped clarify things when my accountant was giving me vague answers!

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5 Have you tried calling the IRS directly to get a definitive answer? I had a similar question about my delivery van for my catering business. After trying for DAYS to get through to the IRS (endless busy signals and disconnects), I found https://claimyr.com which got me connected to an actual IRS agent in under 45 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with clarified that minivans and passenger vans CAN qualify for Section 179, but the deduction is subject to different limits than heavier vehicles. The key is documenting your business usage and making sure the vehicle is primarily for business use. They explained exactly what documentation I needed to keep to support my deduction.

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22 Wait, how does this actually work? Is this some kind of special IRS phone number or do they just keep calling until they get through?

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18 Sorry, but this sounds like BS. Nobody gets through to the IRS that quickly. I've spent literal WEEKS trying to talk to someone. There's no way this service can magically get you to the front of the line.

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5 It's actually a pretty straightforward process. They use an automated system that continually redials the IRS until it secures a place in the queue, then notifies you when you're about to be connected. It's not a special phone number - they're just handling the frustrating part of constantly redialing and waiting. The reason it works is because most people give up after being on hold or getting disconnected a few times. Their system doesn't give up - it just keeps trying until it gets through. Once you're in the queue, they call you and connect you directly to the IRS agent. I was skeptical too, but after wasting so much time trying myself, it was worth it to finally get clear answers about my vehicle deduction questions.

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18 I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it as a last resort before making my vehicle purchase. I was connected to an IRS agent in about 35 minutes who specialized in business deductions. The agent confirmed that for the Honda Odyssey, I could claim Section 179 but with the lower limits for passenger vehicles. He explained that since the GVWR is under 6,000 pounds, the maximum first-year deduction would be limited (around $19,000 for 2025) versus the much higher limits for heavier vehicles. Most importantly, he clarified that what matters is actual business use and proper documentation, not whether it's classified as a "family van." Saved me from potentially making an unnecessary purchase of a larger vehicle I didn't really need!

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3 For what it's worth, I've been using a Honda Odyssey for my mobile pet grooming business for about 3 years. I removed the back seats to create more cargo space, and I can tell you my accountant has had no problem claiming it as a business vehicle with Section 179. The key thing my accountant emphasized was documentation. I keep a detailed mileage log using the MileIQ app, take photos of the vehicle configured for business use, and maintain all receipts for modifications made specifically for business purposes.

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15 That's really helpful! Did you keep any of the seats in or remove them all? And did you have to formally "convert" it somehow for the IRS to accept it as a business vehicle?

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3 I kept only the two front seats and removed everything else to maximize space for my equipment. I didn't need to formally "convert" it in any IRS-specific way, but my accountant advised taking clear photos of the modified interior to document its business configuration. The documentation is what matters most - showing that the vehicle is primarily equipped and used for business. In addition to photos, I keep all receipts for business-specific modifications (like the custom storage system I installed) and maintain a consistent mileage log. My accountant says this evidence package makes it a very defendable deduction if ever questioned.

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10 Has anyone compared the total 5-year cost between claiming actual expenses + depreciation versus just taking the standard mileage rate? I'm debating between the Odyssey and the Chrysler Pacifica for my mobile notary business.

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24 I did this calculation for my real estate business. For my Honda Pilot, actual expenses + depreciation saved me about $3,200 over 5 years compared to standard mileage. BUT - it depends heavily on your specific situation.

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I've been researching this exact question for my consulting business and here's what I found: The Honda Odyssey can qualify for Section 179, but you're right to be concerned about the limitations. The main issue is that most minivans, including the Odyssey, have a GVWR under 6,000 pounds, which subjects them to the luxury vehicle depreciation limits. For 2025, that means your first-year deduction is capped at around $19,200 (including Section 179 and bonus depreciation combined), and you'd apply your 75% business use percentage to that. However, don't overlook that you can still deduct 75% of all your actual vehicle expenses (insurance, gas, maintenance, repairs) on top of the depreciation. For many people, this ends up being more valuable than you'd initially think. My advice: Run the numbers both ways - standard mileage rate versus actual expenses plus depreciation. For a newer vehicle like the Odyssey with higher insurance and maintenance costs, actual expenses often come out ahead. Also, keep immaculate records from day one - the IRS scrutinizes vehicle deductions more heavily, so having detailed mileage logs and expense documentation is crucial. The Odyssey is actually a great choice for business use if it fits your needs - don't let the tax considerations alone drive you toward a vehicle that doesn't work as well for your business operations.

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