🔧 How This Calculator Works

This tool helps you estimate how much of a vehicle’s purchase price may be written off on your taxes when used for qualified business purposes. It simplifies two key IRS tax strategies:

1. Section 179 Deduction

   • Allows businesses to deduct the full or partial cost of a vehicle in the year it’s placed into service.

   • SUVs weighing over 6,000 lbs (but under 14,000 lbs) are capped at $28,900 in 2024.

2. Bonus Depreciation

   • Lets you write off an additional 60% of the vehicle’s remaining value after the Section 179 deduction.

   • This can significantly reduce your taxable income in the first year of ownership.

This calculator combines both deductions to show you:

• Your estimated total write-off

• Your estimated tax savings based on your tax bracket

• Your net vehicle cost after deductions

👤 Who This Is For

This calculator is designed for:

• 🚘 Small business owners and entrepreneurs looking to write off a vehicle

• 💼 Freelancers and self-employed professionals who use their car for work

• 📊 Bookkeepers, consultants, and tax preparers helping clients plan deductions

• 📱 Creators, real estate agents, Turo hosts, contractors, and delivery-based businesses

• 🧠 Anyone looking to maximize legal tax strategies when buying a vehicle for business

⚠️ Disclaimer

This calculator is provided for educational and informational purposes only and does not constitute tax, legal, or accounting advice. The results are estimates based on current (2024) IRS guidelines and may not reflect your unique financial situation. Always consult with a licensed CPA or tax professional before making financial decisions or purchases based on tax benefits.