An Easy Guide to the Section 179 6,000 lb Vehicle Rule

Share
Share
Share
Email

The Section 179 tax deduction gives vehicles under 6,000 pounds that are used for business purposes a deduction cap of $12,400 and $30,500 for vehicles over 6,000 but under 14,000 pounds.* If the 6,000- to 14,000-pound range seems better, you can upgrade a feature like an engine and you may cross the 6,000-pound threshold, allowing you to buy the vehicle you want and increase the deduction.

There is no vehicle-specific limit for over 14,000 pounds. Section 179 deductions apply to any vehicle where more than 50% of the miles you drive are for business, but you have to start using it for business in the year you buy it, and you can’t let business miles drop below 50% for the next five years. Setting up a tracking log and record of usage by vehicle is a great way to ensure the requirements are being met, and you can use cell phone apps, gas reimbursements, and other financial records to keep track.

You’re allowed to use the 179 deduction together with bonus depreciation. Just keep in mind that bonus depreciation is limited to $8,000 for vehicles under 6,000 pounds. Fortunately, you’re not limited to the bonus depreciation you use together with Section 179 for vehicles over 6,000 pounds.

Gross Vehicle Weight Maximum 179 Deduction Bonus Depreciation Eligible?
6,000 lbs. and under $12,400 $8,000
6,001 lbs. to 14,000 lbs. $30,500 Yes
14,000 lbs and over Full amount within other Section 179 limits Yes

This table is accurate as of December 2024.

If you have a specific type of car or truck in mind around the 6,000-pound limit and want to increase its weight to reach the next deduction level, look at the gross vehicle weight ratings (GVWR), which change based on trim, engines, and other options as you can see in this tech spec sheet for Dodge Ram 3500 trucks.

When shopping for a vehicle, double check the GVWR for the exact car you are looking to buy to ensure it’s over or under 6,000 pounds for Section 179 purposes. Most car dealers and manufacturers list GVWRs on their websites. As an example, here’s where Toyota provides this information for their Camry models. On the vehicle itself, you’ll find the GVWR printed on the manufacturer’s safety compliance sticker, which is usually located inside the drive-side door jam.

Example of vehicle information inside door

The Section 179 deduction works for both new and used vehicles whether they’re under or over 6,000 pounds, but you must start using the vehicle for business during the year of purchase.

This means you can’t use Section 179 for a car or truck under or over 6,000 pounds that you:

  • Already own and want to convert to business use.
  • Bought from what the IRS calls “related parties” like a friend or relative.
  • Sell to your own LLC for a 179 deduction.

Another requirement for 179 vehicle deductions is that you must record actual expenses for gas, repairs, and other costs. You can’t use the standard mileage deductions.

Although the IRS limits your 179 deduction for cars over 6,000 pounds, you can depreciate the remaining cost with regular depreciation. But for cars under 6,000 pounds, there’s one more restriction, as the IRS caps the max amount you can depreciate for each following year.

Regardless of weight class, if your business mileage drops below 50% or you sell the vehicle before it’s fully depreciated, you will have to pay depreciation recapture tax. Be careful because vehicles have a 5-year depreciation period that actually spans 6 different tax years.

The six different tax years are because of the “half-year convention” where the depreciation period starts in the middle of the first year and ends in the middle of the 6th year. Talk to your tax professional in cases like these to make sure you’re doing what’s best for your unique situation.

So, whether you’re a realtor escorting clients in your 4,030-pound Tesla Model 3 or a contractor hauling cargo between job sites in a 7,000-pound Ford F-150 5.0L Ti-VCT V8, now you know how Section 179 deductions are different based on whether your vehicle is under 6,000 pounds or over.

 

*As of December 2024