How does using Section 179 for trucks exceeding 14,000 pounds influence their first-year depreciation?
Ask Blue J any tax question, then go deeper. Follow up, add client-specific context, and explore the sources behind every answer with Blue J’s generative AI solution for tax research.
For trucks with a Gross Vehicle Weight Rating (GVWR) exceeding 14,000 pounds, the Section 179 deduction rules provide a significant first-year depreciation benefit, and the treatment is more favorable than for lighter vehicles such as SUVs or pickups between 6,001 and 14,000 pounds.
1. Section 179 Deduction for Heavy Trucks (Over 14,000 Pounds GVWR)
1. No Section 179 Dollar Cap for Certain Heavy Vehicles- Under Section 179, most passenger vehicles and SUVs with a GVWR between 6,001 and 14,000 pounds are subject to a specific annual dollar cap ($31,300 for 2025).- However, vehicles with a GVWR over 14,000 pounds that are not designed primarily for passenger use (such as large cargo vans, box trucks, or heavy-duty pickups with special modifications) are not subject to this cap. This means the entire purchase price (up to the overall Section 179 limit for all property, which is $1,250,000 for 2025, reduced dollar-for-dollar if total qualifying purchases exceed $4,000,000) can be expensed in the year the vehicle is placed in service, provided the vehicle is used more than 50% for business purposes and other Section 179 requirements are met.
2. Order of Deductions- Section 179 expensing is applied first, up to the cost of the vehicle or the Section 179 limit, whichever is less.- After Section 179, any remaining basis can be eligible for bonus depreciation (which is 40% for property placed in service in 2025, unless the property is acquired after January 19, 2025, in which case 100% bonus depreciation may apply under new law).- Any basis remaining after Section 179 and bonus depreciation is then depreciated under MACRS, typically as 5-year property using the 200% declining balance method with a half-year convention.
3. Example CalculationSuppose a business purchases a $120,000 heavy-duty truck (GVWR 16,000 lbs) in 2025, used 100% for business:- The business may elect to expense the entire $120,000 under Section 179, as it is under the $1,250,000 limit and the vehicle is not subject to the SUV cap.- If the business does not use the full Section 179 deduction, the remaining basis can be depreciated using bonus depreciation (40% for most property in 2025, or 100% if acquired after January 19, 2025, under the new law).- Any remaining basis after Section 179 and bonus depreciation is depreciated under MACRS over 5 years.
4. Recordkeeping and Substantiation- The business must maintain detailed records to substantiate business use, including mileage logs, purchase documents, and proof of GVWR.- If business use drops to 50% or less during the recovery period, a recapture of the Section 179 deduction is required.
2. Summary of Influence
For trucks exceeding 14,000 pounds GVWR, Section 179 allows the entire cost (up to the annual Section 179 limit and subject to the business income limitation) to be deducted in the first year, with no special cap for these vehicles. This can result in a full write-off of the purchase price in the year the truck is placed in service, providing a substantial first-year depreciation benefit compared to lighter vehicles, which are subject to lower caps or additional limitations.
If the full cost is not expensed under Section 179, bonus depreciation and MACRS can be used to further accelerate depreciation in the first year and subsequent years.
In summary: Section 179 allows a business to fully expense the cost of a truck over 14,000 pounds GVWR in the first year, up to the annual Section 179 limit, with no special cap for these vehicles, resulting in a potentially very large first-year deduction.
Was this answer helpful?
What Blue J customers are saying
“We are excited to use Blue J to elevate the initial work product our team is able to produce."
"We’re incorporating Blue J to ensure our people are well-equipped with a research tool that delivers on both ease of use and quality of deliverable. It will save us a lot of time as a starting point, so we can focus our efforts on the analysis. Ultimately, it helps us get to the right answer, faster.”
"We’re incorporating Blue J to ensure our people are well-equipped with a research tool that delivers on both ease of use and quality of deliverable. It will save us a lot of time as a starting point, so we can focus our efforts on the analysis. Ultimately, it helps us get to the right answer, faster.”
"We had used Checkpoint for a long time but found it wasn’t particularly well-used in our practice."
"A lot of our practitioners would have to turn to Google to find what they were looking for, which of course isn’t ideal. Blue J is a real game-changer when it comes to this, since it combines the efficiency of Google with the authoritative tax materials our people really need to serve their clients best. At ELO, we pride ourselves on providing services that are focused on value for clients and exceeding their expectations. Adding Blue J to our toolbox will enable us to do just that, as we continue to evolve our service offerings to better serve our clients’ needs.”
"A lot of our practitioners would have to turn to Google to find what they were looking for, which of course isn’t ideal. Blue J is a real game-changer when it comes to this, since it combines the efficiency of Google with the authoritative tax materials our people really need to serve their clients best. At ELO, we pride ourselves on providing services that are focused on value for clients and exceeding their expectations. Adding Blue J to our toolbox will enable us to do just that, as we continue to evolve our service offerings to better serve our clients’ needs.”
"We find this tool to be a game-changer for us and our clients.”
“We had the opportunity to pilot some other AI solutions in the market, and found that the improvement over traditional search was limited - except in Blue J’s case, where the efficiency gain over traditional research methods is significant."
“We had the opportunity to pilot some other AI solutions in the market, and found that the improvement over traditional search was limited - except in Blue J’s case, where the efficiency gain over traditional research methods is significant."
“Blue J is an exciting technology because it enables the practitioner to remain in the driver’s seat of the analysis."
"Thoughtful functions are included to encourage and facilitate deeper analysis, not to replace or reduce it. We’ll continue to find new and impactful ways to leverage the technology, which has benefited our clients and staff alike. At RSM we strive to be compelling to our clients and to be digital by embracing new technologies to fulfill that promise.”
"Thoughtful functions are included to encourage and facilitate deeper analysis, not to replace or reduce it. We’ll continue to find new and impactful ways to leverage the technology, which has benefited our clients and staff alike. At RSM we strive to be compelling to our clients and to be digital by embracing new technologies to fulfill that promise.”
"We wanted to have a tool that people were using at all staff levels."
"We wanted something that lived up on their third screen - something that would be available and helpful to them every day. What we've found is it's been easy to get people to get into the habit of using Blue J because it helps people. Blue J allows us to quickly respond to client questions in a way that they can understand it, which helps us deal with the volume of client questions that come in. We were up and running very quickly with Blue J - within 5 minutes, our staff understood how this will be helpful, and the rest of the training program is refining prompting skills and building use cases and best practices."
"We wanted something that lived up on their third screen - something that would be available and helpful to them every day. What we've found is it's been easy to get people to get into the habit of using Blue J because it helps people. Blue J allows us to quickly respond to client questions in a way that they can understand it, which helps us deal with the volume of client questions that come in. We were up and running very quickly with Blue J - within 5 minutes, our staff understood how this will be helpful, and the rest of the training program is refining prompting skills and building use cases and best practices."
