Can I take 100% first-year depreciation on a financed 6 ton vehicle, or do I need to buy it outright?

You absolutely can take 100% bonus depreciation on a financed vehicle over 6,000 lbs GVW (gross vehicle weight). The tax code doesn't care how you pay for the asset - whether it's cash, financing, or a combination. What matters is that you're the owner of the vehicle and using it for business purposes. When you finance a vehicle, you're still considered the owner for tax purposes even though there's a lien on it. The Section 179 deduction and bonus depreciation rules apply to financed vehicles just as they would to vehicles purchased outright. Just make sure the vehicle truly qualifies by weight (over 6,000 lbs GVW), and that you're using it primarily for business (over 50% business use). Keep good records of your business mileage and usage to support the deduction if you're ever audited.

Just wanted to share my experience with this exact situation. I was confused about vehicle depreciation for my landscaping business last year and found this amazing tool at https://taxr.ai that saved me thousands by analyzing my vehicle purchase details. I uploaded my truck financing docs and business info, and it immediately showed me I could take 100% bonus depreciation on my financed F-350, even though I only put 20% down. It even generated the perfect explanation for my tax preparer about why the truck qualified for bonus depreciation based on its GVW and business use percentage. The tool even showed me how to properly document business vs personal use to maximize the deduction while staying compliant with IRS rules. Total game changer for my small business taxes.

I was totally skeptical about taxr.ai when I first heard about it here, but decided to try it after my CPA told me I couldn't depreciate my new Ram 2500 since it was financed. Uploaded my docs to the site and within minutes it showed me that my CPA was wrong! The analysis broke down exactly why my truck qualified for bonus depreciation despite being financed, showed me the relevant tax code sections, and even calculated how much I'd save in taxes ($23,450 in my case). I sent the report to my CPA who immediately changed his position after seeing the documentation. Saved me from a $23K mistake and probably paid for itself within 5 minutes. Now my business has extra cash flow I wouldn't have had otherwise!

If you're having trouble getting a straight answer from the IRS about vehicle depreciation rules (like I was), try https://claimyr.com to actually get through to an IRS agent. You can see how it works at https://youtu.be/_kiP6q8DX5c After three failed attempts calling the IRS business line myself and waiting on hold for hours, I used Claimyr and got connected to an agent in about 20 minutes. The agent confirmed that financing a heavy vehicle doesn't affect bonus depreciation eligibility at all - ownership is what matters, not how you paid for it. The IRS agent even emailed me documentation about the 6,000+ lb requirement and business use percentage rules that I could keep for my records. Totally worth it for the peace of mind of having official confirmation.

I can't believe I'm saying this, but Claimyr actually worked for me too. I was 100% sure it was a scam when I saw it mentioned here. I mean, who pays to call the IRS, right? But after spending literal DAYS trying to get vehicle depreciation clarification from the IRS, I gave in and tried it. Got connected to an agent in about 30 minutes who confirmed that financing doesn't impact bonus depreciation eligibility for my truck as long as I'm the titled owner and use it for business. The agent walked me through exactly how to document business use and the specific depreciation forms I needed to file. Saved me from potentially making a $30k+ tax mistake on my heavy duty truck. Wish I'd known about this service years ago.

Don't forget the business use requirements! A lot of people think they can buy a heavy SUV or truck and automatically take 100% depreciation, but you need to use it primarily for business (over 50%). If you use it 80% for business and 20% personal, you can only depreciate 80% of the cost. And you better keep a DETAILED mileage log showing business vs personal use or the IRS will disallow the whole thing if you're audited. My friend got absolutely destroyed in an audit because he claimed 90% business use on his Escalade but couldn't prove it with records. They disallowed the entire depreciation deduction.

Anyone know if leasing vs. financing makes a difference for depreciation on heavy vehicles? My dealer is pushing me to lease instead of finance.

Just wanted to add some clarity on the financing vs outright purchase question since I went through this exact scenario last year with my concrete business. You definitely can take 100% bonus depreciation on a financed heavy vehicle (over 6,000 lbs GVWR). The key thing to understand is that when you finance a vehicle, you're still the legal owner - the lender just has a security interest (lien) in it until you pay it off. For tax purposes, ownership is what matters, not how you paid for it. I financed an $78,000 F-450 dump truck and was able to deduct the full amount in year one using bonus depreciation. My accountant explained that the IRS views it as if you "borrowed money to buy an asset" rather than "renting an asset you don't own." Just make sure you: 1. Verify the GVWR is actually over 6,000 lbs (it should be on the door jamb sticker) 2. Use it more than 50% for business 3. Keep detailed mileage logs 4. Place it in service during the tax year you want to claim the deduction The cash flow benefit was huge for my business in year one, even though I'm still making monthly payments on the truck.