Vehicle Deduction for Business: Section 179, Bonus Depreciation, and the 6,000-Pound Rule
The tax treatment of business vehicles depends on two critical factors: the vehicle’s gross vehicle weight rating (GVWR) and the percentage of business use. Vehicles over 6,000 pounds GVWR are classified as “heavy SUVs” or “heavy trucks” and are generally eligible for full first-year deduction through Section 179 (subject to a $31,300 SUV cap for 2025) plus 100% bonus depreciation on the remaining cost. Vehicles under 6,000 pounds are subject to the luxury automobile limits under IRC 280F, which cap depreciation at $20,400 in Year 1 (with bonus depreciation), $19,800 in Year 2, $11,900 in Year 3, and $7,160 for each subsequent year until fully depreciated. Business use must exceed 50% for accelerated depreciation; if it falls below 50%, the vehicle must be depreciated using the Alternative Depreciation System (ADS) straight-line method, and prior excess depreciation must be recaptured.
Vehicle deduction rules by weight:
| Factor | Under 6,000 lbs GVWR | 6,001-14,000 lbs GVWR | Over 14,000 lbs GVWR |
|---|---|---|---|
| Category | Passenger automobile | Heavy SUV/truck | Heavy vehicle (not limited) |
| Section 179 limit | Subject to luxury caps | $31,300 SUV cap (2025) | Full Section 179 ($2,500,000) |
| Bonus depreciation | Subject to luxury caps | Available on amount after Section 179 | Full bonus depreciation |
| Year 1 max deduction | $20,400 (with bonus) | Full cost (Section 179 + bonus) | Full cost |
| Example vehicles | Sedan, small SUV, compact truck | Most full-size SUVs, heavy-duty trucks | Box trucks, delivery vans, semi trucks |
IRC 280F luxury vehicle caps (2025, passenger automobiles under 6,000 lbs):
| Year | With Bonus Depreciation | Without Bonus |
|---|---|---|
| Year 1 | $20,400 | $12,400 |
| Year 2 | $19,800 | $19,800 |
| Year 3 | $11,900 | $11,900 |
| Year 4+ | $7,160/year | $7,160/year |
Common vehicles and their GVWR:
| Vehicle | GVWR | Category |
|---|---|---|
| Toyota Camry, Honda Accord | ~4,000 lbs | Under 6,000 (luxury caps apply) |
| Tesla Model 3, BMW 3 Series | ~4,500 lbs | Under 6,000 (luxury caps apply) |
| Tesla Model X, BMW X5 | ~6,800 lbs | Over 6,000 (SUV cap) |
| Cadillac Escalade | ~7,500 lbs | Over 6,000 (SUV cap) |
| Ford F-150 (most configs) | ~6,100-7,050 lbs | Over 6,000 (SUV cap) |
| Chevrolet Suburban | ~7,500 lbs | Over 6,000 (SUV cap) |
| Ford F-250 | ~10,000 lbs | Over 6,000 (SUV cap) |
| Ford E-Series box truck | 14,000+ lbs | Over 14,000 (no caps) |
Business use percentage rules:
| Business Use | Depreciation Method | Consequences |
|---|---|---|
| Over 50% | Section 179 + bonus depreciation allowed | Normal accelerated depreciation |
| Exactly 50% or below | ADS straight-line only | No Section 179, no bonus depreciation |
| Drops below 50% after Year 1 | Recapture of excess depreciation | Must report recaptured amount as ordinary income |
How much can a business owner deduct for a vehicle?
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Yarik Yarosh, CPA. "Vehicle Deduction for Business: Section 179, Bonus Depreciation, and the 6,000-Pound Rule." Blue Cloud CPA, September 5, 2026. https://bluecloudcpa.com/guides/small-business-vehicle-tax-deduction-6000-pound-rule-280f
This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.