How to Claim Your Truck as a Business Tax Deduction?

by Kevin Smith Author

Many types of businesses use pickup trucks to get they job done. From farmers to construction workers, business owners across the state rely on their trucks for hauling, towing, and more, making these vehicles a necessary business expense. If you're looking for a Chevrolet Silverado for sale in San Antonio, TX, you might be wondering if you can claim your new truck as a tax deduction for your business. And if so, how much can you expect to deduct for it? Here are some of the basics for claiming your new truck as a business expense.

Deducting Your Truck

The IRS recognizes the importance of reliable vehicles for businesses of all types. And while they place limits on the deductions you can claim for passenger vehicles, those limits don't actually apply to larger vehicles. Automobiles with a gross vehicle weight over 6,000 pounds are eligible for a 100% deduction on your business's tax return. The 2018 Chevy Silverado has a gross vehicle weight of 6,900 to 7,200 pounds, so it falls into this category. This means that you can claim 100% of the vehicle's purchase price on your tax return.

In past years, this deduction only applied to new vehicle purchases. However, the new tax law that went into effect in 2018 expands this deduction to both new and used automobiles. So, even if you're purchasing a used truck, as long as it meets the minimum gross vehicle weight, you can still claim 100% of the purchase price.

Using Your Truck for Business Purposes

It is important to note that, if you wish to claim this deduction on your tax return, you must be purchasing the truck for business purposes. The vehicle has to be put into service for your business before you can claim it on your tax return, and must be used exclusively for your company to qualify for the 100% deduction. If your business is audited, and they find that the vehicle is not used for your company, you may be subject to fines and penalties.

But with the durability and versatility you get from the Chevy Silverado, you'll find that there are numerous ways that you can use this truck for your company's benefit and growth. From surveying construction sites to transportation around your farm and hauling supplies to your property, the Chevy Silverado will finish whatever job you need done.

If you're considering a Chevrolet Silverado for sale in San Antonio, TX, for your business vehicle, and you have questions about deducting it on your business taxes, please seek the advice of a certified accountant.