Purchasing vehicle for 90% business use - can I claim tax deduction for depreciation?

So if they use the car for business like 90% this year but only 15% next year, does that mean they'd have to pay back taxes on the difference? Also isn't there some rule about cars over 6,000 pounds qualifying for bigger deductions? My accountant mentioned something about that last year.

Yes, if you use accelerated depreciation (Section 179 or bonus depreciation) and business use drops below 50% in a subsequent year, you would need to recapture some of the excess depreciation you claimed. This would be reported as ordinary income on your tax return for that year. Regarding vehicles over 6,000 pounds gross vehicle weight rating (GVWR), you're absolutely right. These qualify as "heavy SUVs" or trucks for tax purposes and have more generous deduction limits. For 2025, these vehicles can qualify for full Section 179 expensing (up to certain limits) and bonus depreciation, which could allow for significant first-year deductions. Regular passenger vehicles have much stricter annual depreciation limits.

Does it work for vehicles under 6,000 pounds too? I've got a sedan I use for real estate showings but my accountant says the deduction is really limited compared to if I had an SUV.

I'm kinda skeptical about these online tax tools. How does it know what the IRS will actually accept? I've heard horror stories about people getting audited for vehicle deductions. Does it actually review your specific situation or just spit out generic advice?

Yes, it absolutely works for vehicles under 6,000 pounds! It actually has specific calculation tools for passenger vehicles that are subject to the luxury auto depreciation limits. For your real estate business, it would calculate the exact maximum deduction you can take each year based on your business usage percentage. The tool actually uses the same regulations and guidelines the IRS follows. It's not just generic advice - you input your specific vehicle information, purchase price, business use percentage, and it applies the current tax laws to your situation. It even creates documentation explaining how each calculation was performed, which serves as supporting evidence if you're ever questioned during an audit.

Wait, this actually works? How does it get you through the IRS phone system when everyone else is stuck on hold forever? This seems too good to be true.

No way this is legit. The IRS phone system is deliberately designed to make people give up. I've tried calling about business vehicle deductions three times this month and never got through. If this service actually worked, everyone would be using it. Sounds like another scam to me.

It uses a combination of automated dialing technology and AI to navigate the IRS phone tree and secure your place in line. They basically wait on hold for you, then call you when they've reached an actual IRS representative. It's completely legitimate - they just found a way to optimize the calling process. The reason everyone doesn't use it is that most people don't know about it yet. I was skeptical too until I tried it. But after wasting almost two full workdays trying to get through on my own, it was absolutely worth trying. I got clear answers about depreciation recapture rules that I couldn't find anywhere else.

Thanks for this warning! What mileage tracking app do you recommend? I want to make sure I'm keeping proper records from day one with this new vehicle purchase.

I've been using MileIQ for the past year and it's been a game-changer. It runs in the background on your phone and automatically detects when you're driving. After each trip, you just swipe right for business or left for personal. It logs the date, time, starting point, destination, and mileage for every trip. At tax time, you can generate detailed reports that show exactly what percentage was business vs. personal use. There are other good options too like Everlance or TripLog. The important thing is having contemporaneous records - trying to recreate a mileage log at tax time or during an audit is extremely difficult and the IRS can tell when records were created after the fact.

Yeah, but beware that the clean vehicle credit has a bunch of new requirements about where the car and batteries are manufactured. A lot of EVs only qualify for partial credits now or none at all. Check the IRS website for the official list of qualifying vehicles before making any decisions based on getting the credit.

Thanks for pointing that out. You're absolutely right about checking the IRS website first. I should have mentioned that the rules got much more complicated with the Inflation Reduction Act. There's now both manufacturing requirements and price caps on vehicles to qualify for the full credit. The IRS maintains an updated list of qualifying vehicles at fueleconomy.gov. Definitely verify eligibility before counting on that credit, as it varies not just by make and model but sometimes even by specific trim levels and manufacturing locations.