In many cases, the entire cost of certain heavy vehicles (with a GVWR over 6,000 pounds) used 100% for business can be fully deducted in the first year by combining these special depreciation methods. However, lighter passenger cars are subject to strict annual deduction limits.
Key Factors for First-Year Vehicle Write-Offs
The primary methods for deducting the cost of a business vehicle in the first year are Section 179 Expense Deduction and Bonus Depreciation (both fall under the actual expenses method).
1. Vehicle Gross Vehicle Weight Rating (GVWR)
The GVWR—the maximum allowable weight of the vehicle, including the passengers, cargo, and all fluids—is the most critical factor that determines the deduction limit.
| Vehicle Type | GVWR | First-Year Deduction Potential |
| Heavy Vehicles | Over 6,000 lbs | May qualify for a full (100%) write-off in the first year, depending on the specific vehicle type (e.g., certain vans or large pickup trucks). |
| Heavy SUVs | Over 6,000 lbs but not over 14,000 lbs | Subject to a specific Section 179 limit (e.g., $31,300 for the 2025 tax year), but the remaining cost may be fully deducted using Bonus Depreciation. This combination often allows for a full write-off. |
| Light Vehicles (Passenger Autos) | 6,000 lbs or less | Subject to annual depreciation caps, making a full write-off in the first year highly unlikely. The maximum first-year deduction for 2025 is typically limited (e.g., to $20,200 total, including Bonus Depreciation). |
Note: Vehicles that are not subject to the passenger auto limits often include large delivery vans, heavy construction vehicles, and certain pickup trucks with a cargo bed of at least six feet.
2. Business Use Percentage
You can only deduct the portion of the vehicle’s cost that reflects its business use. To qualify for Section 179 or Bonus Depreciation, your business use of the vehicle must be greater than 50%.
- If the vehicle is used 100% for business, you can deduct the full eligible amount.
- If the vehicle is used 75% for business, you can only deduct 75% of the total eligible amount.
3. Depreciation Methods (Actual Expenses Method)
To claim a large first-year write-off, you must choose the Actual Expenses Method and utilize one or both of the following:
- Section 179 Deduction: This allows you to deduct the cost of qualifying business property in the year it’s placed in service. For most heavy vehicles (over 6,000 lbs GVWR), you can combine Section 179 with Bonus Depreciation to deduct a significant portion, or even the entire cost, in year one.
- Limit for Heavy SUVs: Vehicles over 6,000 lbs but under 14,000 lbs (like many large SUVs) have a specific Section 179 cap (e.g., $31,300 for 2025).
- Bonus Depreciation: This allows you to deduct an additional percentage of the cost after applying the Section 179 deduction. For qualified property acquired and placed in service after a certain date in 2025, the rate is often 100%, which is why a full write-off in the first year is possible for heavy vehicles.
Important: If you claim Section 179 or Bonus Depreciation, you cannot use the Standard Mileage Rate (e.g., 70.0 cents per mile for 2025) in any future year for that specific vehicle.
Next Steps
Consulting with a qualified tax professional is essential before purchasing a vehicle with the expectation of a full first-year write-off. They can help you:
- Confirm the GVWR of the specific make and model you intend to purchase.
- Accurately calculate the maximum allowable deduction for the current tax year.
- Ensure you maintain the proper mileage logs and records to substantiate your business use percentage, which the IRS requires.
