Can I buy a car through my business and write it all off?
Short answer
You can often deduct a large part of a vehicle in the year you buy it, but only the business-use share, and the biggest first-year write-offs generally require more than 50% business use and depend on the vehicle's weight.
Otavio Mayole, Co-founder, DeCypher FinancialsUpdated
What decides how much you can write off:
- Business-use percentage. If you use the car 85% for business, 85% of the cost is the starting point. A mileage log proves it.
- More than 50% business use unlocks the larger first-year deductions. At 50% or less, you're limited to slower depreciation.
- Vehicle weight. Regular passenger cars have yearly caps on depreciation. Heavier SUVs and trucks have different, larger limits.
- Staying above 50%. If business use drops later, part of the deduction can come back as income.
We've seen returns from other preparers claim a full first-year write-off on a car used 40% for business. That doesn't hold up, and it can turn a refund into a bill with penalties.
What we need from you: the purchase or lease agreement for the right car, a mileage log, and how the car is titled and paid for.
Buy the car because you need it. The write-off reduces the cost; it doesn't make the car free.
These are not guarantees. Every creator's situation is different.