Is Section 179 vehicle write-off possible for luxury SUV (G Wagon/Urus) for medical practice?

I can help with this. Section 179 does allow for business vehicle deductions, but there are significant limitations for SUVs that you need to understand. For 2025, SUVs between 6,000-14,000 pounds gross vehicle weight have a Section 179 deduction limit of $28,900 (this number is adjusted annually for inflation). Vehicles like the G-Wagon, Urus, etc. typically fall in this weight class, meaning you can only deduct $28,900 using Section 179 - not the full purchase price of $190k-320k. For the remaining amount, you'd need to use regular depreciation rules, which stretch the deduction over several years. Additionally, you must document that the vehicle is used primarily (over 50%) for business purposes. If business use drops below 50% in future years, you may face recapture of previous deductions. Another consideration: luxury vehicles face "listed property" scrutiny from the IRS, requiring meticulous mileage logs documenting business vs. personal use. The more expensive and luxurious the vehicle, the more likely the IRS will question whether it's a necessary business expense.

After struggling with similar vehicle deduction questions for my business, I found an amazing tool that gave me definitive answers about Section 179 deductions. I was getting conflicting advice from different accountants until I used https://taxr.ai which analyzed my specific situation and provided a detailed report on exactly what I could deduct. For my situation with a high-end vehicle (not quite as expensive as yours, but similar scenario), it showed me precisely what portion could be deducted under Section 179, what needed to be depreciated over time, and most importantly, what documentation I needed to maintain to support my deduction. The tool runs your scenario against current tax code and recent IRS rulings to give you accurate guidance.

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Something no one has mentioned yet - if you're buying a vehicle that expensive primarily for business, you should consider leasing instead of purchasing. With the lease, you can potentially deduct the entire monthly payment as a business expense (subject to the same business use percentage requirements). For vehicles over the luxury threshold (which all your options definitely are), leasing often provides better tax benefits because you avoid the depreciation limits. You just need to make sure the lease terms make sense for your business usage.

Don't forget about business insurance costs! When I bought my Range Rover for my law practice, my insurance nearly tripled compared to my previous vehicle. Make sure you factor this into your calculations.

As someone who went through this exact decision process last year for my dental practice, I'd strongly recommend getting a professional tax analysis before making such a large purchase. The Section 179 limitations for luxury SUVs are real - you're looking at around $28,900 maximum deduction in the first year, with the remaining $160k-290k spread over several years through regular depreciation. What really caught me off guard was the documentation requirements. The IRS expects detailed mileage logs, business purpose for each trip, and can challenge luxury vehicle deductions years later. I learned this the hard way when my accountant underestimated the record-keeping burden. Given your practice's revenue, you might also want to consider the overall tax strategy. Sometimes it's better to spread large deductions across multiple years rather than taking them all at once, especially if it pushes you into higher tax brackets or triggers AMT issues. Have you consulted with a tax professional who specializes in medical practices? They often have insights about vehicle deductions that general CPAs miss.

Emily, as someone who's navigated similar luxury vehicle purchases for high-revenue medical practices, I want to highlight a few additional considerations beyond the excellent Section 179 advice already shared. First, with your practice generating $13-15M annually, you're likely in a situation where the timing of deductions matters significantly. The $28,900 Section 179 limit for luxury SUVs might actually be less impactful to your overall tax strategy than the multi-year depreciation schedule for the remaining $160k-290k. Second, consider the audit risk profile. Luxury vehicle deductions on medical practice returns do get additional IRS scrutiny, especially when the vehicle cost exceeds $200k. The business purpose documentation requirements for high-end vehicles like a G-Wagon or Urus are substantially more rigorous than for standard business vehicles. Third, given your mention of recruiting associate doctors and traveling between offices, have you considered whether multiple less expensive vehicles might serve your business needs better while providing more favorable tax treatment? Two $100k vehicles might give you more total deductions and less audit risk than one $300k vehicle. Finally, with a December 31st deadline, make sure your accountant runs projections on how this deduction interacts with any other major equipment purchases or practice investments you're planning. Sometimes the tax benefit is optimized by spreading large purchases across tax years.

Emily, I've been following this discussion and wanted to add something important that hasn't been fully addressed - the potential state tax implications for your luxury vehicle purchase, particularly if you're in a state with different depreciation rules than federal. Many states don't conform to federal Section 179 or bonus depreciation rules, which could create a significant timing difference between your federal and state tax deductions. For instance, some states require you to add back federal Section 179 deductions and then depreciate the vehicle over a longer period using their own schedules. Given your practice's revenue level ($13-15M), these state/federal differences could create substantial complexity in your tax planning. You might find yourself with a large federal deduction this year but having to spread the state deduction over many years, affecting your overall cash flow planning. I'd strongly recommend having your tax professional run projections that include both federal and state tax impacts before your December 31st deadline. This is particularly important for medical practices since you likely have other significant equipment purchases and practice-related deductions that could be affected by how you structure this vehicle purchase. Also, consider whether your state has any specific rules about luxury vehicle deductions for medical professionals - some states have additional restrictions beyond the federal rules.