Need help understanding vehicle write-off/deduction for my LLC - buying car/truck/SUV options?
So I kinda stumbled into starting an LLC last year and surprisingly made about $42k profit. Never thought I'd actually make money with it! But now I need a new vehicle since my old beater finally died and I'm wondering if I can write it off for my business. I'm looking at either a mid-size SUV (around $38k) or a pickup truck (around $45k). My business involves delivering specialty food products to local restaurants and catering events, so I definitely use a vehicle for business purposes like 70% of the time. I heard something about Section 179 deductions and bonus depreciation but honestly I'm totally lost. Can I deduct the full purchase price? Does it matter if it's a car vs truck vs SUV? And should I put the vehicle in my LLC's name or my personal name? I really should get an accountant but I'm trying to figure out the basics before I make this purchase decision. Any advice is super appreciated!!
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Jamal Harris
I help small business owners with these questions all the time! Vehicle deductions can be confusing but let me break it down for you. The type of vehicle actually does matter. The IRS has different classifications and limits based on vehicle weight. SUVs, trucks, and vans over 6,000 pounds gross vehicle weight rating (GVWR) qualify for much better deduction options under Section 179. For 2025, vehicles over that 6,000 lb threshold can potentially be fully deducted in the year of purchase (up to $28,800). Lighter vehicles have more restrictions. Since you mentioned using it 70% for business, you'd only be able to deduct that percentage of the cost. You can title the vehicle either way, but if it's in your personal name, make sure you track business mileage meticulously. If it's in the LLC name, remember you'll need commercial insurance, which is more expensive. Also, consider whether you want to take actual expenses (depreciation, gas, maintenance, etc.) or just use the standard mileage rate (which is around 67 cents per mile for 2025). You'll need to choose one method when you first start using the vehicle for business.
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Zoe Stavros
•Thanks so much for explaining! I didn't know about the 6,000 pound thing - so basically I should be looking at heavier duty SUVs and trucks for better tax benefits? Also, is leasing any better than buying from a tax perspective? And if I put it in the LLC name, can I still use it sometimes for personal stuff or is that a no-no?
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Jamal Harris
•Heavier vehicles definitely have tax advantages, which is why you'll often see business owners gravitating toward larger SUVs and trucks. Just make sure to confirm the specific GVWR of any vehicle you're considering - it should be listed on a sticker inside the driver's door jamb. Leasing can be simpler from a tax perspective because you can deduct the business percentage of your lease payments rather than dealing with depreciation calculations. However, you'll miss out on the potential large upfront Section 179 deduction. You can absolutely use an LLC vehicle for personal use, but you must track personal vs. business usage carefully and only deduct the business portion. The personal use portion will likely be considered a taxable fringe benefit to you.
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GalaxyGlider
After struggling with similar questions for my construction business, I found this awesome tool that really helped me figure out my business vehicle deductions. Check out https://taxr.ai - it has this specific calculator for business vehicle deductions where you put in the vehicle weight, purchase price, and business use percentage, and it tells you exactly what you can deduct and how to maximize it. I was super confused about Section 179 vs. bonus depreciation and whether my F-150 qualified for the bigger deductions. The tool analyzed everything and showed me I could save like $8k more than I thought on my taxes. It even created documentation to support everything in case of an audit.
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Mei Wong
•Does it work for leasing too? I'm leasing a work van for my mobile dog grooming business and I'm so lost on what I can claim.
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Liam Sullivan
•Sounds too good to be true tbh. How is it different from just talking to an accountant? And does it handle state tax differences? In California we have all these extra rules.
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GalaxyGlider
•Yes, it absolutely works for leasing! You just select lease instead of purchase, enter your monthly payment, and it calculates everything, including the best way to handle the lease inclusion amount for luxury vehicles. It's definitely not a replacement for an accountant, but it's way cheaper for specific questions like vehicle deductions. The nice thing is it explains everything in plain language and gives you documentation. And yes, it handles state differences - when I input my info, it automatically adjusted for my state's rules that differ from federal guidelines (I'm in Texas, but it covers all states including California's quirks).
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Mei Wong
Just wanted to follow up about that taxr.ai site. I actually tried it for my leased van situation and wow it was super helpful!! I was taking way too small of a deduction because I was confused about how to handle the personal use portion. The tool showed me I could deduct about $4,200 more than I was planning to and explained exactly how to document everything properly. It even helped me understand if I should switch to actual expenses from the standard mileage rate based on my specific situation. Totally worth checking out if you're confused about vehicle deductions like I was!
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Amara Okafor
I went through this exact situation last year with my landscaping business. Spent HOURS trying to reach the IRS to get clarification on some vehicle deduction questions. Finally found this service called Claimyr https://claimyr.com that got me through to an actual IRS agent in like 30 minutes instead of waiting for days. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent walked me through all the vehicle classification stuff and confirmed I could take the full Section 179 deduction on my truck since it was over 6,000 pounds and used primarily for business. Saved me so much stress and probably thousands in deductions I might have missed.
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Giovanni Colombo
•Wait, how does that even work? The IRS never answers their phones. I've literally tried calling dozens of times about my business deductions.
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Fatima Al-Qasimi
•Yeah right. No way this works. I've been on hold with the IRS for like 3+ hours before giving up. If this actually worked, everyone would be using it. Sounds like a scam to me.
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Amara Okafor
•It works by using their system that tracks the IRS phone queues and calls at exactly the right time when wait times drop. They literally call the IRS, wait on hold for you, then call you when they have an agent on the line and connect you directly. It's completely legit. It's not free, but considering I got through in about 27 minutes when I had been trying for days on my own, it was totally worth it. The IRS agent I spoke with confirmed my truck qualified for the full Section 179 deduction which saved me thousands. It's definitely not a scam - they've been featured in major publications and helped thousands of people.
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Fatima Al-Qasimi
I have to eat my words about Claimyr. After my skeptical comment, I was still desperate to talk to the IRS about my vehicle deduction questions, so I gave it a shot. Not even kidding - I got connected to an actual IRS agent in about 45 minutes. The agent confirmed that my Chevy Tahoe qualifies for the larger Section 179 deduction since it's over the 6,000 pound limit. This literally saved me thousands in taxes and cleared up all my confusion. After trying to call the IRS myself for weeks with no success, this was like magic. If you're confused about vehicle deductions like I was, definitely worth it to get answers straight from the source.
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StarStrider
Something nobody mentioned yet - make sure you keep DETAILED records if you're planning to deduct vehicle expenses. My cousin got audited because of his business vehicle deductions and it was a nightmare because he didn't have good documentation. Keep a mileage log with dates, starting/ending odometer readings, and purpose of each business trip. Take pictures of receipts for all vehicle expenses. Document when and why you're using the vehicle for business vs personal use. The tax savings can be huge but not worth it if you can't back it up during an audit!
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Zoe Stavros
•Thanks for the warning! What's the best way to track all this? Do you use an app or just write it down?
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StarStrider
•I personally use MileIQ app - it automatically tracks all my trips and lets me swipe right for business or left for personal. Super easy and creates IRS-ready reports. But there are lots of good options like Everlance or TripLog too. The important thing is consistency. The IRS loves to question vehicle deductions, so whatever method you choose, use it religiously. And if you're claiming the vehicle is used 70% for business, your records should actually show approximately that percentage. I've seen too many people claim high business use percentages without the documentation to back it up.
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Dylan Campbell
Has anyone here actually formed an LLC operating agreement that specifically includes the purchase of a business vehicle? I'm wondering if I need to update my operating agreement before purchasing a truck for my landscaping business.
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Sofia Torres
•You don't necessarily need to update your operating agreement, but it's not a bad idea to document the vehicle use policy. My accountant had me create a simple resolution authorizing the vehicle purchase that we keep with our LLC records. Basically just states the business purpose of the vehicle, who's authorized to drive it, and how personal use will be handled.
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