Vehicle over 6000 lbs tax deduction 2022

 
Limitations

Keep in mind that vehicles are subject to limitations on any of the depreciation deductions. The vehicle must be used at least 50% for business to qualify. Also, there are top end deductions for different classes of vehicles. For example, small cars under 6,000 lbs., Luxury autos, are capped at $18,000 of depreciation in the first year, $10,000 if bonus deprecation is not taken due to luxury auto limitations, the IRS has imposed to help discourage the depreciation of high value vehicles. SUVs and crossovers with Gross Weight above 6,000 lbs. are capped at $25,000 if Section 179 is taken. SUVs and crossovers with Gross Weight above 6,000 lbs. do not have a cap if Bonus Depreciation is taken. Pickups and vans with no rear passenger seating that are above 6,000 lbs. also do not have a cap. Every major brand of pickup (1/2 ton and up) are over 6,000-pounds for purposes of this deduction. This includes Ford, Ram, Chevrolet, Toyota, GMC, and Nissan. When you get down to the mid-sized trucks you might be surprised to find that some of these are right on the line. A 2018 Chevrolet Colorado crew cab is over the weight limit, but the extended cab is not, so it might save enough in taxes to make it worthwhile to upgrade to the bigger size. If Section 179 or Bonus depreciation is used standard mileage rates cannot be used for any periods after the year deprecation is taken and actual auto expenses (fuel, tires, repairs, etc.) must be tracked going forward.

Mileage

Another great automobile deduction that is often overlooked is the mileage deduction. This is a unique deduction because it does not matter how much you actually spend but matters how much you drive. This is the deduction you use if you are not depreciating the cost of your vehicle. This would be used when mileage is a better deduction than depreciation, or when depreciation is not allowed (for example if you used your vehicle less than 50% for business).

The mileage rate is increasing from the 2021 tax year amount of 57.5 cents per mile. This year it has changed and is split.  Pay close attention to this important change:

• 1/1 – 6/30/22     58.5 cents per mile
• 7/1 – 12/31/22  62.5 cents per mile

This deduction is much easier than keeping track of your expenses for gasoline, oil changes, tire replacement, etc. Keep in mind, however, that you cannot double dip and use the mileage deduction in addition to expensing your gasoline, oil changes, tire replacement, etc or. In addition, if Section 179 or Bonus depreciation is used standard mileage rates cannot be used for any periods after the year deprecation is taken and actual auto expenses (fuel, tires, repairs, etc.) must be tracked going forward.

Which Vehicles Qualify

Here is a quick reference to some vehicles that are over 6,000-pounds GVWR. There may be others not listed here, I highly recommend you look on the inside of the driver’s door to verify the Gross Vehicle Weight Rating, sometimes equipment and options push a vehicle over the limit to qualify, and conversely a lack of options can keep a vehicle from qualifying, so do your homework!

IMPORTANT:  This is the list of 2022 models that qualify, however, in 99% of the cases, the 2023 models of the same vehicle will have a higher-not lower GVWR.

• Audi

  • e-tron
  • Q7
  • Q8

• Bentley

  • Bentayga

• BMW

  • iX
  • X5
  • X6
  • X7

• Buick

  • Enclave

• Cadillac

  • XT5
  • XT6
  • Escalade

• Chevrolet

  • Blazer
  • Silverado
  • Suburban
  • Tahoe
  • Traverse

• Chrysler

  • Pacifica

• Dodge

  • Durango
  • Grand Caravan

• Ford

  • Expedition
  • Explorer
  • F-150
  • Larger pickups

• GMC

  • Acadia
  • HUMMER
  • Sierra
  • Yukon, Yukon XL

• Genesis

  • GV80 3.5T 

• Honda

  • Odyssey
  • Ridgeline 4WD

• INFINITI:

  • QX80
  • QX56

• Jeep:

  • Gladiator Rubicon
  • Grand Cherokee
  • Grand Wagoneer
  • Wagoneer

• Land Rover

  • Range Rover
  • Discovery

• Lexus

  • GX460
  • LX570
  • LX600

• Lincoln

  • Aviator
  • MKT AWD
  • Navigator

• LUCID

  • Lucid Air

• Mercedes-Benz

  • G550
  • GLS
  • GLE
  • Metris
  • Sprinter

• Nissan

  • Armada
  • NV 1500
  • NVP 3500
  • Titan

• Ram

  • RAM Promaster 1500-3500
  • RAM 1500 TO 3500

• Rivian 

  • R1T

• Porsche

  • Cayenne
  • Taycan

• Subaru

  • Ascent

• Tesla

  • Model X

• Toyota

  • 4Runner
  • Landcruiser
  • Sequoia
  • Tundra

• Volkswagen

  • Atlas V6 4Motion
  • ID.4 Pro S AWD

• Volvo

  • XC90

DISCLAIMER:  

While every effort was made to make sure this list is accurate, Car Pro Radio Network, CarPro and its affiliates are not responsible for errors or omissions.

Always consult with your tax professional.

SPECIAL THANKS TO THE SHOW CPA BILL CATON OF FARMER FUQUA & HUFF, PC  AND THEIR STAFF FOR THEIR HELP DECIPHERING THIS COMPLICATED TAX CODE.

Click Here to Visit Caton Consulting Group. They are not affiliated with the CarPro Show.

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Jerry Reynolds

From police officer to top-selling Ford dealer to on-air car expert, Jerry helms our weekly radio show. Since selling his dealerships in 2006, Jerry has pursued his top three passions: helping consumers have a great car buying experience, supporting the military and first responders, being a loyal servant to his dog! While Jerry admits to hitting the pedal to the metal on test drives, it's all the service of finding out just how fast he can go from 0 to 60.