Does the Lexus LX600 qualify as luxury vehicle for Section 179 deduction?

Yes, your Lexus LX600 should qualify for the full Section 179 deduction since its GVWR is over 6,000 pounds (yours is 7,230 lbs). The tax code specifically creates an exception for "heavy vehicles" - generally SUVs, trucks and vans with a GVWR above 6,000 pounds. The fact that it's a luxury brand doesn't matter for this purpose. What matters is the weight classification. The IRS doesn't distinguish between a Ford Expedition and a Lexus LX600 if they both have GVWRs over 6,000 pounds. They're both treated as heavy vehicles for Section 179 purposes. Just make sure you're using the vehicle primarily for business (more than 50% business use). Also, be aware that the deduction amount can change yearly, so verify the current limits for the 2025 tax year.

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Another thing to consider with your Lexus LX600 is that you need to maintain really good records of business use percentage. If you use it 70% for business and 30% personal, you can only deduct 70% of the allowable amount. And the IRS scrutinizes luxury vehicles more closely. I learned this the hard way when I was audited for my Land Rover deduction. The IRS wanted to see a mileage log showing business vs. personal use. I didn't have good records and ended up losing a portion of my deduction plus had to pay penalties. Now I use a mileage tracking app that automatically logs everything.

Make sure you're actually putting the vehicle in service before December 31st if you want to take the deduction for this tax year! I made that mistake with my Mercedes G-Wagon - bought it in December but didn't actually start using it for business until January, and my accountant said I couldn't take the Section 179 deduction until the following tax year.

Just want to add from my experience with a similar situation - I purchased a Lexus GX460 last year and went through this exact process. The key thing that helped me was getting Form 4562 filled out correctly. Since your LX600 has a GVWR over 6,000 lbs (7,230 lbs), it does qualify as a heavy vehicle, but you're right to be concerned about the luxury SUV limitation. For 2025, the SUV cap is $30,400, not the full Section 179 limit. So even though your LX600 is heavy enough to avoid the regular luxury vehicle restrictions, it still falls under the special SUV category that has its own cap. This is actually still a pretty good deal compared to regular depreciation though. One more tip - make sure you have the vehicle's actual certificate of conformity or window sticker showing the GVWR. The IRS may want to see official documentation of the weight rating if they ever question your deduction. I learned this from my tax preparer who said some luxury vehicle deductions get flagged for review more often.

Based on everyone's discussion here, it sounds like your Lexus LX600 definitely qualifies for Section 179 treatment due to its 7,230 lb GVWR, but you'll be subject to the luxury SUV cap of around $30,400 for 2025. One thing I haven't seen mentioned yet is that you should also consider your total business income when planning this deduction. Section 179 can't exceed your business's taxable income for the year - so if your business only made $20,000 in profit, you can only deduct up to $20,000 even though the SUV limit is higher. Any unused portion can be carried forward to future years though. Also, since you mentioned your accountant wasn't 100% sure about the specifics, you might want to consider getting a second opinion or using one of the services others have mentioned here. Vehicle deductions can be complex, especially for luxury SUVs, and getting it wrong can be expensive if you're audited. The peace of mind is worth it when you're dealing with a high-value vehicle like the LX600.

I just want to add one more important consideration that hasn't been fully addressed - the timing of when you actually start using the LX600 for business matters a lot for tax planning. Since we're getting close to year-end, make sure you have a clear business purpose and documentation for when you first put it into service. Also, don't forget about state tax implications. Some states have different rules for vehicle deductions or may not conform to federal Section 179 treatment. I learned this the hard way when I took a large federal deduction but my state (California) had different limitations that created a big state tax bill I wasn't expecting. Finally, consider whether taking the full $30,400 deduction this year makes sense for your overall tax situation, or if spreading it out might be more beneficial. Sometimes it's worth running the numbers both ways, especially if you're already in a high tax bracket or expecting income changes in future years.