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IRC § 179 & § 280F Luxury Auto Rules100% In-Browser & Private

Section 179 Vehicle Weight & Tax Deduction Sizer

Determine your exact first-year tax write-off, bonus depreciation, and out-of-pocket cash savings for commercial work trucks, heavy SUVs over 6,000 lbs GVWR, and passenger vehicles.

Select Vehicle Preset:

1. Vehicle Classification & GVWRGross Vehicle Weight Rating

Heavy SUV Limitation (IRC § 179(b)(5)): Section 179 expensing is capped at $32,000. However, the remaining balance qualifies for 100% Bonus Depreciation in Year 1 plus regular 20% Year 1 MACRS!

2. Purchase Price & Usage PercentageTax Basis Calculation

$
%

3. Tax Bracket & Cash Savings SizerMarginal Rates

%
Year 1 Tax Write-Off

$105,000

Total Asset Write-Off
100.0%
Section 179 Immediate Expensing$32,000.00
Special Bonus Depreciation (100%)$73,000.00
Year 1 MACRS 200% DB (20%)$0.00
Estimated Cash Tax Savings:$45,150

Based on a combined 43% effective marginal tax rate.

Effective Net Out-of-Pocket:$59,850

5-Year Tax Depreciation Amortization Schedule

IRS Form 4562 Depreciation & Amortization Schedule through Year 6 (Half-Year Convention)

YearCalendar YearDeduction TypeAnnual DeductionEnding Tax Book Value
Yr 12026Year 1 (Sec 179 + Bonus + MACRS)$105,000.00$0.00
Yr 22027Year 2 MACRS Depreciation$0.00$0.00
Yr 32028Year 3 MACRS Depreciation$0.00$0.00
Yr 42029Year 4 MACRS Depreciation$0.00$0.00
Yr 52030Year 5 MACRS Depreciation$0.00$0.00
Yr 62031Year 6 MACRS Depreciation$0.00$0.00

Understanding the Section 179 6,000 lb Vehicle Rule

How small businesses, contractors, and corporate executives leverage IRS tax codes to accelerate vehicle write-offs.

1. The 6,000 lb GVWR Threshold

Under IRC § 280F, passenger cars and small SUVs under 6,000 lbs Gross Vehicle Weight Rating are subject to strict "luxury automobile" depreciation caps. Vehicles with a manufacturer-rated GVWR over 6,000 lbs (found on the driver door jamb placard) escape these harsh luxury caps.

2. Heavy SUV Limitation vs. Work Trucks

Under IRC § 179(b)(5), heavy SUVs and crossovers between 6,001 and 14,000 lbs are limited to an inflation-adjusted Section 179 cap ($32,000 for 2026). However, pickup trucks with a bed at least 6 feet in interior length and cargo vans with an enclosed cargo area are exempt from that limit and can write off 100% of the purchase price.

3. The 50% Business Use Requirement

To claim any Section 179 or bonus depreciation, the vehicle must be used more than 50% for qualified business purposes. If business use drops to 50% or below in any subsequent year during the 5-year recovery period, the IRS requires "depreciation recapture", converting previous tax savings into taxable income.

4. Financing & Equipment Leasing

You do not need to pay 100% cash to claim Section 179. Vehicles purchased with third-party vehicle loans or equipment financing qualify for the full first-year deduction based on the total purchase price, allowing you to deduct more than your initial down payment.

How to use this tool

  1. Classify the vehicle

    Pick a preset or enter the manufacturer GVWR from the driver-side door jamb placard. GVWR is the rated operating weight, not the curb weight.

  2. Enter purchase price and business use

    Business use must exceed 50% or Section 179 and bonus are both disallowed, and prior deductions can be recaptured.

  3. Set the tax year and your bracket

    The year sets the Section 179 cap, the heavy SUV limit and the luxury auto caps under IRC § 280F. Your federal and state marginal rates convert the deduction into cash.

  4. Read the first-year write-off

    Section 179 is applied first up to the cap, then bonus depreciation on the remaining basis, then MACRS. Download the workpaper or export the amortisation schedule.

Frequently Asked Questions

Where do I find my vehicle's exact GVWR?

Gross Vehicle Weight Rating (GVWR) is NOT the curb weight of the vehicle. GVWR is the maximum operating weight specified by the manufacturer, including passenger and cargo capacity. You can verify your exact GVWR on the federal safety certification label affixed to the driver-side door jamb.

Can I take Section 179 on a leased vehicle?

No. Section 179 and bonus depreciation are only available for vehicle purchases (cash or loan financing) and capital lease structures ($1 buyout leases). Standard operating leases cannot claim Section 179; instead, you deduct the monthly lease payments as an ordinary business operating expense (subject to IRS lease inclusion tables).

What is the difference between Section 179 and Bonus Depreciation?

Section 179 allows you to write off a specific dollar amount up to statutory limits, but it cannot create a net operating loss (it is limited to business taxable income). Bonus depreciation, by contrast, has no dollar ceiling and CAN create or increase a net operating loss that can offset other income or carry forward.

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