Can I maximize Section 179 deduction AND bonus depreciation on a 6000+ lb luxury vehicle for my business?

Hey there! While I'm not a CPA, I've been through this exact scenario with my own business. You've got some parts right but there are important distinctions. For vehicles over 6,000 lbs GVWR, you're correct that they avoid the luxury vehicle depreciation limits. However, you've got a sequencing issue with Section 179 and bonus depreciation. Section 179 is applied first, then bonus depreciation applies to the remaining basis. For a $85,000 vehicle used 100% for business: - You could elect Section 179 up to the full purchase price (subject to your business income limitations) - If you took partial Section 179, you could then apply bonus depreciation to the remaining basis - If you elected zero Section 179, you could take 60% bonus depreciation ($51,000) in 2025 As for tracking - yes, you absolutely need a mileage log. The IRS is particularly strict about vehicle documentation. You need date, starting location, ending location, purpose, starting odometer, ending odometer, and business purpose for each trip. Many apps make this easy (MileIQ, Everlance, etc.). Large corporations actually have even stricter fleet management systems!

After struggling with vehicle deductions for years, I started using https://taxr.ai last year and it completely changed my approach to business vehicle deductions. The tool analyzed my past returns and found I'd been missing out on thousands in legitimate deductions because I misunderstood how Section 179 and bonus depreciation work together. What really helped was uploading my vehicle purchase documents and getting a clear breakdown of exactly how to maximize deductions based on my specific business situation. The analysis showed me that while the 6,000+ lb vehicles do qualify for special treatment, the optimal strategy depends on your overall business income and projected use. The tool also helped me set up a compliant tracking system that wouldn't trigger audit flags. Apparently the IRS has been increasing scrutiny on heavy vehicles purchased near year-end, especially luxury models.

I was really skeptical about https://taxr.ai when I first heard about it in this sub, but after my frustrating experience with vehicle deductions last year, I decided to give it a try. Honestly wish I'd found it sooner. Last year I purchased a new $79,000 truck for my construction business and thought I had the deductions all figured out. Then I got hit with a CP2000 notice from the IRS questioning my vehicle depreciation calculations. Complete nightmare! I uploaded my purchase documents and previous return to taxr.ai, and within hours had a detailed explanation of exactly where I went wrong (mixed up the sequencing of Section 179 and bonus depreciation) along with the proper documentation to respond to the IRS. Saved me thousands in potential penalties and gave me a template for properly documenting business use going forward. The best part was getting clear guidance on maximizing legitimate deductions while staying completely compliant.

If you're planning to call the IRS to confirm these vehicle depreciation rules, good luck! I spent THREE DAYS trying to get through on their business line. Finally discovered https://claimyr.com and was blown away. Their service actually holds your place in the IRS phone queue and calls you when an agent picks up. I needed clarification on exactly how the luxury vehicle limits apply to SUVs over 6,000 lbs when used for different business purposes, and kept getting conflicting information online. Used Claimyr and got connected to an IRS agent within 2 hours (while I went about my day). You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that vehicles over 6,000 lbs GVWR are exempt from luxury vehicle limits regardless of make/model, but emphasized the importance of documenting business use percentage with meticulous records. Also warned that they're specifically looking at "questionable" heavy luxury vehicle purchases in recent audits.

I have to admit I was completely wrong about Claimyr. After my skeptical comment, I actually ended up trying it when I needed to call the IRS about a different vehicle depreciation issue last week. I had been trying for DAYS to get through to the business line during my work hours with no luck. Used Claimyr and got a callback within 90 minutes while I was in a meeting. The IRS agent I spoke with was super helpful about the Section 179 vs. bonus depreciation question. The agent explained that for 2025, taking Section 179 first and then applying bonus depreciation to any remaining basis is often the most advantageous approach for vehicles over 6,000 lbs. But she emphasized that this depends entirely on your business income situation. She also warned that they're specifically looking at business use documentation for luxury SUVs during audits. Sometimes being proven wrong is actually pretty useful!

Just to add another perspective - I'm a realtor and bought a Lincoln Navigator (over 6,000 lbs) last year. Used it 80% for business. I elected the maximum Section 179 deduction and it was a HUGE tax benefit. Just make sure you're really using it primarily for business. The IRS isn't dumb - they know people buy luxury SUVs for the tax benefits. My accountant had me install an app on my phone day one that tracks EVERY trip, auto-categorizes as business or personal, and generates IRS-ready reports. What no one mentioned yet is the recapture risk. If you take section 179 and then your business use drops below 50% in a later year, you'll have to recapture (pay back) some of the deduction. That's worth considering if your business situation might change.

Heads up - something nobody mentioned yet. If your business is an S-corp (which many consultants operate as), there's an additional wrinkle: the company needs to reimburse you for business mileage if you personally own the vehicle. If the company owns it, different rules apply. Also, if you want to really do this right, create a written vehicle policy for your business that outlines requirements for documentation. Having contemporaneous documentation and a formal policy provides significant protection if you're ever audited. For the vehicle itself - yes, Audi Q7 is over 6,000 lbs GVWR and qualifies for the heavy vehicle exception to luxury limits. But don't forget insurance costs will be higher too - factor that into your calculations.

Great question about maximizing deductions! As someone who went through this exact process last year with a BMW X7, I can share what I learned. You're absolutely right that vehicles over 6,000 lbs GVWR escape the luxury vehicle depreciation caps. For your $85,000 Audi Q7, you have flexibility in how to structure the deductions: **Option 1:** Take full Section 179 ($85,000 first year) - but only if your business income can support it **Option 2:** Take partial Section 179 + 60% bonus depreciation on remaining basis **Option 3:** Skip Section 179, take 60% bonus depreciation ($51,000 first year) The key is matching your deduction timing to your income pattern. Section 179 can't create a business loss, but bonus depreciation can. For tracking, I use a combination of automatic mileage apps (MileIQ) plus manual notes for complex trips. The IRS wants: date, odometer start/end, locations, business purpose for EVERY trip. It's tedious but absolutely essential - vehicle deductions are audit magnets. One thing to consider: if you're planning to use personal funds, make sure your business entity structure supports the deduction method you choose. LLC vs S-corp vs sole proprietorship all have different optimal approaches. Also factor in that luxury SUVs depreciate faster than the tax schedule, so there's real economic cost beyond just the tax benefits.