Paying cash for a business vehicle
Varies
Can You Write Off Paying Cash for a Business Vehicle?
Short answer: Yes: you can deduct depreciation on a vehicle paid in cash, including bonus depreciation in year one.
How you pay doesn't change the deduction; business-use percentage does.
Records to keep: Keep receipts or invoices, proof of payment, and a short note of the business purpose.
BW-B22-00792
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Paying cash for a business vehicle
Varies
General Business
Vehicles & Fleet
Business Write-Off Questions
Yes: you can deduct depreciation on a vehicle paid in cash, including bonus depreciation in year one.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Yes: you can deduct depreciation on a vehicle paid in cash, including bonus depreciation in year one. How you pay doesn't change the deduction; business-use percentage does.
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