Section 179 Tax Deduction for Vehicles Over 6,000 lbs
- Nisha Mehta, MD
- 3 hours ago
- 8 min read
We often get questions from the business owners in our online physician community asking about the Section 179 tax deduction for vehicles weighing over 6,000 pounds. This is a legitimate tax provision designed to help support business owners who use certain vehicles for business purposes. It can be a powerful tax write-off, but the rules are often misunderstood (or worse, misused). Below, we cover what this tax deduction is, how it works, and how to determine if it applies to your clinical role or side gig business.
Note that given the complexities of the US tax code, we highly recommend discussing the Section 179 deduction with your accountant, as this article is only meant to be a general overview. See the disclaimer below.
Disclosure/Disclaimer: Our content is for generalized educational purposes. While we try to ensure it is accurate and updated, we cannot guarantee it. Rules/laws can change frequently. We are not formal financial, legal, or tax professionals and do not provide individualized advice specific to your situation. You should consult these as appropriate and/or do your own due diligence before making decisions based on this page. To learn more, visit our disclaimers and disclosures.
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How vehicle tax deductions typically work (and why the Section 179 deduction can be so powerful)
What is the Section 179 tax deduction and how does it apply to vehicles?
The advantage of the Section 179 tax deduction for heavy vehicles (6,000+ lbs)
Bonus depreciation vs Section 179 deduction: what’s best for me?
Important notes about the Section 179 deduction for vehicles
How vehicle tax deductions typically work (and why the Section 179 deduction can be so powerful)
Business owners must choose between two methods for claiming business vehicle deductions: the standard mileage deduction method or the actual expense method. When taking the standard mileage deduction, you are allowed to deduct a set amount per mile (such as $0.70/mile) that’s driven for business related purposes. This amount does not allow you to deduct other vehicle related expenses, such as the cost of the vehicle itself. For higher cost vehicles, this can often result in smaller deductions, and can spread your tax deduction over a longer timeframe.
Many business owners opt for the actual expense method. Under this method, business owners can deduct the cost of the vehicle, but it isn’t automatically a straightforward 1-for-1 deduction. For example, if you purchase a vehicle for $70,000, even if the vehicle is used 100% for business, you can’t necessarily receive a $70,000 tax deduction–at least not right away.
The IRS generally requires depreciating large assets, which means you must deduct the cost of a large purchase over several years instead of all at once upfront in the same year as the purchase. Since vehicles are considered assets that provide value over multiple years, businesses normally don’t get to deduct the full cost of the vehicle upfront, even if they paid cash for it. The Section 179 deduction can provide a caveat to this general rule.
What is the Section 179 tax deduction and how does it apply to vehicles?
Section 179 comes from IRS tax law, and Section 179 covers many types of property as deductible expenses, including certain vehicles. Section 179 allows eligible businesses and self-employed individuals to deduct the cost of qualifying property when filing their taxes, including vehicles, though it imposes certain restrictions and limitations. These limits cap how much depreciation you can deduct each year, regardless of how expensive the vehicle is.
The specific deduction amount for each vehicle depends on:
The year purchased and placed in service
The manufacturer’s gross vehicle weight rating (GVWR) for the vehicle
The vehicle cost
The business-use percentage
Under Section 179, vehicles can generally be separated into a couple of categories:
Light passenger automobiles, trucks, and vans with a GVWR less than 6,000 pounds
Heavier passenger vehicles, such as SUVs trucks, and vans with a GVWR between 6,000 lbs - 14,000 lbs
Specialized vehicles & vehicles over 14,000 lb GVWR
The allowable tax deduction limit differs depending on the type of vehicle. For light vehicles used primarily (over 50% of the time) for business purposes, the IRS imposes luxury auto depreciation limits.
For 2025, the luxury auto depreciation limits are:
Year 1: $20,200*
Year 2: $19,600
Year 3: $11,800
Each following year: $7,060
* The Year 1 amount assumes you take a bonus depreciation. If you don’t, the Year 1 limit drops to $12,200.
Heavier vehicles are generally exempt from the luxury auto depreciation limits.
For heavier passenger vehicles with a GVWR of 6,000-14,000 lbs, a $31,300 deduction limit is imposed. Amounts above this limit can be deducted via a bonus depreciation, up to the full amount of the vehicle.
When looking at the Section 179 deduction rule for heavier vehicles, this is typically what doctors can qualify for.
If a vehicle isn’t used 100% of the time for business purposes, a partial deduction amount may be imposed that’s lower than the limits listed above.
Note, however, that some states may impose their own restrictions or limits to the IRS’s Section 179 deduction rules. Make sure you review your local tax regulations, and/or discuss this with your accountant.
Specialized vehicles and vehicles over 14,000 lb GVWR are more common in specific industries (such as construction) and generally have no functionality for personal use. These vehicles typically qualify for a full Section 179 deduction, up to a maximum deduction limit of $2,500,000 (other caps also apply).
How to qualify for the Section 179 deduction for vehicles
The following vehicles can apply for the Section 179 deduction:
Both new and pre-owned vehicles
Cars, SUVs, trucks and vans
Vehicles purchased in cash and vehicles that are financed
To qualify for a Section 179 deduction, a vehicle must meet the following criteria:
Must be used more than 50% of the time for business purposes
Must be purchased and put into use in the same year
What counts as business use can be nuanced, but may include:
Traveling between job sites
Business-related travel away from the regular work location
Generally, business use does not include commuting to the regular work location. If you have a home office you use as your primary place of work for admin tasks for the same business you’re using the vehicle for, you can work with your CPA to determine if your home office can qualify as a principal place of business to allow a higher percentage of business use for your vehicle. Note that this does not apply in all cases.
If you’re not sure how your work-related travel should be classified, we highly recommend working with a qualified CPA to help you navigate the complexities of the Section 179 deduction.
Related PSG resource:
The advantage of the Section 179 tax deduction for heavy vehicles (6,000+ lbs)
Under the Section 179 tax deduction, businesses may be able to write off the full purchase price of qualifying heavy vehicles in the year of purchases, instead of having to depreciate the cost over several years as outlined above. For businesses considering a vehicle purchase that falls within the 6,000+ lbs rules, this deduction can significantly reduce their current year’s tax liability.
Let’s look at a specific example to see how physicians can leverage a vehicle for a Section 179 deduction.
Dr. Smith purchases a new $60,000 truck in May
She immediately begins driving it for qualified business related travel
The truck has a GVWR of 7,000 lbs
Dr. Smith uses this vehicle 100% of the time for business activities
According to Section 179 rules, Dr. Smith’s truck is a heavy vehicle under Section 179 rules and is not limited by the luxury auto caps. She can take the full Section 179 tax deduction up to the limit, as well as a 100% bonus depreciation.
Bonus depreciation for vehicles
Under the One Big Beautiful Bill Act of 2025, A 100% bonus depreciation was permanently restored for qualified property acquired January 20, 2025 or later. This can provide a huge advantage for capitalizing your tax deductions against your current income, as business owners can take both the Section 179 deduction and a bonus depreciation.
Bonus depreciation rules can be complex, and are still subject to change, even with the recent changes under the OBBB, so we recommend working with an accountant while navigating your options.
Bonus depreciation vs Section 179 deduction: what’s best for me?
This can depend on what you’re trying to optimize with your tax strategy, as well as where you live.
If you want the biggest immediate write-off, start with the bonus depreciation. Bonus depreciation can be ideal if you have a significant income and just want a write off.
If you want to fine tune the deduction amount (or avoid a loss), start with the Section 179 deduction. You can still take the bonus depreciation as highlighted above (if desired). Your CPA can help find a "sweet-spot" to ensure your deductions are offsetting income at the highest marginal tax brackets each year.
If you live in a state with an income tax filing, ask your accountant to run both scenarios, as state taxation can vary widely for bonus depreciation and Section 179.
Important notes about the Section 179 deduction for vehicles
This can be a powerful and completely legal tax technique, but a few quick notes:
You can’t deduct more than your business made that year with the Section 179 deduction
This is a tax deduction, not a tax credit. It reduces your taxable income. It does not provide a dollar for dollar reduction of your tax bill.
While this can provide a significant tax savings, it’s not free money, and shouldn’t be treated as such when considering which vehicle to use for your business
You can find lists of eligible vehicles with their GVWRs online, and they are often updated annually for the newest models.
For vehicles right on the border of the 6,000 lbs limit, different trims of a certain model may be classified as >6,000 lbs GVWR , while others are less and don’t qualify for the special bonus depreciation rules. It’s important to double check the specific vehicle you’re considering purchasing.
If the Section 179 deduction is used, the standard mileage method cannot be used for any years after the deduction is taken. Actual expenses must be tracked and used going forward for future vehicle related deductions.
Keep detailed records of your vehicle usage, including mileage logs, receipts and invoices for all related expenses in case you ever need them to show your business use in an audit.
Taking advantage of the Section 179 deduction for vehicles can impact other tax deductions you may take, such as the Qualified Business Income (QBI) deduction.
Given the complexities of the US tax code, we again highly recommend discussing the Section 179 deduction with your accountant.
Conclusion
The special Section 179 tax deduction rules for vehicles with a GVWR of over 6,000 lbs can be a powerful tax strategy for doctors to leverage, but only when it aligns with your actual business needs and tax situation. Not all business-related travel qualifies as “business use” to qualify for this tax deduction, and it’s a tax deduction, not a tax credit. If, however, you have a legitimate need for a business vehicle, the heavy vehicle rules can offer more favorable tax deduction allowances versus luxury auto depreciation limits.
Related business & tax resources for physicians
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