As a business owner, there are tax benefits for using a vehicle for business purposes. Not all vehicles are created equally, and here are examples of some that produce a larger deduction.
SUV’s and Pickups
Vehicles with a gross vehicle weight rating (GVWR) above 6,000 pounds and not more than 14,000 produce a much greater deduction than passenger cars.
According to Kelly Blue Book, here is a list of some popular SUV’s and pickups with a GVWR above 6,000 pounds:
Make and Model Approximate GVWR (pounds)
Jeep Grand Cherokee/Grand Cherokee L 6,050/6,500-6,700
Ford Explorer 6,060-6,150 (with 3.0-liter V6)
Jeep Wrangler 6,400 (with 6.4-liter V8)
Toyota 4Runner 6,005-6,505
Toyota Grand Highlander 6,010-6,340
Ford Bronco 4-Door 6,040-6,180 (with some 2.3-liter & all 2.7-liter models)
Chevrolet Tahoe 7,400-7,600
Ford Expedition 7,200-7,600
Chevrolet Traverse 6,160
Nissan Pathfinder 6,063 (4WD Platinum)
GMC Yukon 7,400-7,700
BMW X5 6,173-7,055
Dodge Durango 6,500-7,100
Jeep Wagoneer/Jeep Wagoneer L 7,300-7,500/7,400-7,700
Chevrolet Blazer 6,001
Tax Benefits
The reason for the tax benefits is because the limitations for various depreciation deductions are more favorable for these heavy vehicles compared with passenger vehicles.
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