Starting in 2018, it is now possible to claim a 100% tax deduction for the cost of a vehicle. Here are the rules (be sure to consult with your tax advisor before implementing any tax strategies!):

  • Vehicle can be new or used.
  • Vehicle has weight in excess of 6,000 lbs. or can be classified as a cargo/delivery van (no seats behind driver) or be a pick-up truck with a full-size cargo bed (at least six feet in length).
  • Must be used 100% for business. If less than 100% but at least 50% business use, the amount of the overall deduction is limited to the business use %.
  • The Section 179 deduction is limited to $25,000 per vehicle in 2018.
  • 100% bonus depreciation is available in 2018 on any vehicle purchased.

EXAMPLE:  Purchase a 2018 Audi Q7 3.0L TDI and 100% Business Use

Purchase Price:                      $74,205

Less: Section 179:                  $25,000

Remaining basis:                   $49,205

Less: Bonus Depreciation:  $49,205

Remaining basis:                   $0

Tax Savings:                      $14,327

·        Assumes 24% Federal and 5% State income taxes ($165k-$315k Married Filing Joint/Single = half)

Tax Savings:                   $20,750

·        Assumes 37% Federal and 5% State income taxes (over $500k single/$600k Married Filing Joint)

After a bit of research via Google, I was able to find this list of 2018 vehicles with a gross weight over 6,000 lbs. This is not likely to be an exclusive list and if you are unsure it never hurts to ask the dealer:

Audi Q7 3.0L TDI

BMW X5 XDRIVE35I

BMW X6 XDRIVE35I

Buick ENCLAVE

Cadillac ESCALADE AWD

Chevrolet Truck AVALANCHE 4WD

Chevrolet Truck SILVERADO

Chevrolet Truck SUBURBAN

Chevrolet Truck TAHOE 4WD

Chevrolet Truck TRAVERSE 4WD

Dodge Truck DURANGO 4WD

Ford Truck EXPEDITION 4WD

Ford Truck EXPLORER 4WD

Ford Truck F-150 4WD

Ford Truck FLEX AWD

GMC ACADIA 4WD

GMC SIERRA

GMC YUKON 4WD

GMC YUKON XL

Infiniti QX56 4WD

Jeep GRAND CHEROKEE

Land Rover RANGE ROVER 4WD

Land Rover RANGE ROVER SPT

Land Rover LR4

Lexus GX460

Lexus LX570

Lincoln MKT AWD

Mercedes Benz G550

Mercedes Benz GL500

Nissan ARMADA 4WD

Nissan NV 1500 S V6

Nissan NVP 3500 S V6

Nissan TITAN 2WD S

Porsche CAYENNE

Tesla MODEL X

Toyota 4RUNNER 4WD

Toyota LANDCRUISER

Toyota SEQUOIA 4WD LTD

Toyota TUNDRA 4WD

Volkswagen TOUAREG HYBRID