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Daryl Bright

Can someone explain bonus depreciation rules for business vehicles based on weight?

Title: Can someone explain bonus depreciation rules for business vehicles based on weight? 1 I've been looking into purchasing a vehicle for my real estate business and I'm confused about how bonus depreciation works. From what I understand, vehicles over 6,000 lbs qualify for bonus depreciation where you can write off the entire purchase in year one. But what about lighter vehicles? Can I still depreciate any business vehicle regardless of weight? Is the only difference with heavier vehicles that you can take the full deduction immediately versus having to spread it out over several years for lighter cars? I'm trying to decide between a small SUV (around 4,500 lbs) or stepping up to a larger model that exceeds the 6,000 lb threshold. The price difference is about $15,000 more for the heavier vehicle. Would appreciate any insights from those who've navigated this before!

14 You're on the right track with your understanding! Yes, you can depreciate any vehicle used for business purposes regardless of weight, but there are significant differences in how much you can deduct and how quickly. For vehicles under 6,000 lbs (called "luxury automobiles" in tax code, even if they're not luxury brands), there are strict annual depreciation limits. For 2025, these limits are approximately $12,200 for the first year, $19,500 for the second year, $11,700 for the third year, and $6,960 for subsequent years until fully depreciated. For vehicles over 6,000 lbs GVWR (gross vehicle weight rating), if used more than 50% for business, you can take advantage of bonus depreciation - currently allowing a 60% first-year write-off for 2025, with normal depreciation applying to the remaining basis. This is the major advantage of heavier vehicles. Remember that regardless of the vehicle's weight, you can only deduct the business-use percentage. If you use the vehicle 75% for business, you can only deduct 75% of the allowable depreciation.

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8 Thank you for that explanation. One follow-up question - does the business use percentage apply before or after calculating the maximum "luxury automobile" limits? For example, if I have a $35,000 car used 80% for business, do I take 80% of $12,200 for year one, or do I apply the 80% to the $35,000 first and then apply the limits?

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14 The business-use percentage applies to the depreciation amount after applying the luxury auto limits. So in your example with an $35,000 car used 80% for business, you would first apply the luxury auto limit of $12,200 for year one, and then take 80% of that amount, resulting in a $9,760 deduction for the first year. For the second question, keep in mind that bonus depreciation for 2025 is 60% (down from 80% in 2024), so you won't get the full first-year write-off even with a vehicle over 6,000 lbs. The percentage will continue to phase down in coming years according to current tax law.

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12 Does it work for other business assets too or just vehicles? I'm looking at buying some equipment for my business and I'm confused about Section 179 vs bonus depreciation.

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19 I'm skeptical about these AI tax tools. How accurate is it really? Has anyone verified the calculations against what a real CPA would recommend? I'd hate to rely on something like this only to get audited.

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17 If you're trying to get clarification on business vehicle depreciation rules directly from the IRS, good luck getting through to them! I spent THREE DAYS trying to reach someone about this exact question. After getting disconnected multiple times, I found https://claimyr.com which got me connected to an IRS agent in under 15 minutes. You can see a demo here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with clarified that while any business vehicle can be depreciated, there are specific SUVs, trucks and vans that qualify for the enhanced deduction even if they're under the 6,000 lb threshold. I would have never known this without speaking directly to an agent. They walked me through exactly how to document my business use to maximize my deduction.

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4 Wait, how does this service actually work? Does it just call the IRS for you? Couldn't you just do that yourself? Seems like paying someone to wait on hold for you.

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11 This sounds like a scam. The IRS barely answers their own phones, I find it hard to believe some third-party service can magically get through. Plus, giving access to your tax info to some random company seems risky.

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17 It's not magic - they use technology that navigates the IRS phone system and waits in the queue for you. When an agent picks up, you get a call back immediately. You don't have to sit on hold for hours, which is what happened to me three times before I tried this. No, they don't access any of your tax information. They just get you connected to an IRS agent, and then you handle the conversation yourself. It saved me literally hours of frustration and potential mistakes with my vehicle deduction.

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3 One thing nobody's mentioned yet - if you're self-employed, don't forget about the potential for additional self-employment tax deductions related to your vehicle. I learned this the hard way last year. When I purchased my SUV (7,200 lbs) for my contracting business, I took the bonus depreciation but wasn't tracking my mileage properly. My accountant explained that I could have saved another $3,800 if I had maintained a proper mileage log to deduct actual expenses versus taking the standard mileage rate.

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9 Could you explain more about the mileage log? I thought if you take bonus depreciation you can't also claim mileage deductions for the same vehicle?

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3 You're right that you can't take both bonus depreciation AND standard mileage on the same vehicle. It's an either/or choice, and once you choose actual expenses (which is what allows for depreciation deductions) for a vehicle, you generally can't switch to standard mileage later. What I was referring to is that within the actual expense method, you need to track your business use percentage with a mileage log. This is different from the standard mileage rate. Without a detailed log, the IRS can challenge your claimed business percentage, which affects how much of your depreciation and other actual expenses you can deduct.

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22 Does anyone know if electric vehicles get any special depreciation treatment for business use? I'm looking at a Tesla Model Y which is around 4,500 lbs (so under the 6,000 threshold) but heard there might be extra incentives.

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15 Yes! For 2025, there's a commercial clean vehicle credit under Section 45W that can give you up to $7,500 for smaller vehicles like the Model Y when purchased for business use. This is separate from depreciation but definitely helps with the overall cost. The vehicle still follows regular depreciation rules based on its weight class, but the upfront credit makes a big difference.

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Just wanted to share my experience as someone who recently went through this exact decision! I ended up choosing the heavier vehicle (Ford F-150 at 6,100 lbs) over a smaller SUV, and it made a huge difference on my taxes. The key thing I learned is that you need to look at your total business use percentage and cash flow needs. Even though the heavier truck cost me $12,000 more upfront, the enhanced depreciation benefits meant I could deduct about $25,000 more in year one (at 80% business use). This significantly reduced my tax liability and improved my cash flow. One tip - make sure you get the GVWR (Gross Vehicle Weight Rating) from the manufacturer's specs, not the curb weight. The GVWR is what the IRS uses to determine eligibility. Some vehicles that seem close to 6,000 lbs might actually qualify based on their GVWR even if their curb weight is lower. Also, don't forget to factor in your state taxes too - some states have additional depreciation benefits for business vehicles that can make the decision even more favorable toward the heavier option.

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