Question 1

What is the MACRS recovery period for trucks?

Accepted Answer

Light-duty trucks (under 13,000 lbs GVW) are 5-year MACRS property. Heavy trucks and tractor units over 13,000 lbs are also 5-year property but are exempt from the Section 280F luxury auto limits, allowing full depreciation without annual caps. Trailers are classified separately as 5-year property.

Question 2

Are trucks exempt from Section 280F luxury limits?

Accepted Answer

Trucks with a gross vehicle weight rating (GVWR) over 6,000 lbs are exempt from the Section 280F luxury auto limits. This means you can claim full Section 179 expensing and bonus depreciation without the annual depreciation caps that apply to passenger cars. Many popular pickup trucks (F-150, Silverado, RAM 1500) qualify.

Question 3

How fast do commercial trucks depreciate?

Accepted Answer

Commercial trucks typically depreciate 15-25% in the first year and around 60-70% over five years. Heavy-duty trucks used in construction or long-haul transport may depreciate faster due to wear. Well-maintained trucks with lower mileage can retain more value, and brands like Peterbilt and Kenworth tend to hold value better than average.

Question 4

Can I use Section 179 for a new truck purchase?

Accepted Answer

Yes. Trucks over 6,000 lbs GVW can qualify for the full Section 179 deduction (up to $1,250,000 in 2025) without the $30,500 SUV limitation. This makes heavy trucks one of the most tax-advantaged business vehicle purchases. Combined with bonus depreciation, you may be able to deduct the entire cost in the first year.

Question 5

How do I depreciate a delivery van or cargo van?

Accepted Answer

Delivery and cargo vans follow the same MACRS rules as trucks. Vans over 6,000 lbs GVW (like Ford Transit, Mercedes Sprinter) are exempt from luxury auto limits. Lighter vans may be subject to Section 280F caps. Use the 5-year MACRS recovery period with the half-year or mid-quarter convention based on when you placed the vehicle in service.

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1What is the MACRS recovery period for trucks?

2Are trucks exempt from Section 280F luxury limits?

3How fast do commercial trucks depreciate?

4Can I use Section 179 for a new truck purchase?

5How do I depreciate a delivery van or cargo van?

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Truck / Heavy Vehicle

Heavy Vehicle Tips

Frequently Asked Questions

1What is the MACRS recovery period for trucks?

2Are trucks exempt from Section 280F luxury limits?

3How fast do commercial trucks depreciate?

4Can I use Section 179 for a new truck purchase?

5How do I depreciate a delivery van or cargo van?

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