Yes, you can deduct your truck if you use it for your contracting business. The key is that you can only deduct the portion used for business. If you drive the truck 80% for work and 20% for personal errands and family trips, you deduct 80% of eligible costs.

There are two methods for deducting vehicle expenses. The standard mileage rate lets you deduct a set amount per business mile driven (67 cents per mile for 2024). The actual expense method lets you deduct the business-use percentage of gas, insurance, repairs, tires, registration, and depreciation. Most contractors with larger trucks and higher operating costs come out ahead with the actual expense method, but you should run both calculations to see which gives you a bigger deduction.

If your truck has a gross vehicle weight rating over 6,000 pounds, you may be able to deduct the full purchase price in the year you bought it under Section 179. This applies to a lot of the trucks contractors actually drive, like F-250s, F-350s, Silverado 2500s, and Ram 2500s. Lighter trucks like base-model F-150s and Tacomas fall under stricter annual limits. This is one of the biggest deductions available to contractors and worth discussing with someone who handles tax strategy before you make the purchase.

One thing to understand is that a tax deduction is not a reimbursement. Deducting a $60,000 truck doesn’t save you $60,000 in taxes. It reduces your taxable income by $60,000, which might save you $15,000 to $20,000 depending on your tax bracket. Don’t buy a truck you can’t afford just because someone told you to “write it off.” That advice has cost a lot of contractors money they didn’t need to spend.

Documentation is where most contractors fall short. The IRS expects a mileage log that shows the date, destination, business purpose, and miles driven for each trip. Driving from your house to a job site counts. Driving to Home Depot for project materials counts. Driving your kids to school does not. Without a log, the IRS can deny the entire deduction in an audit. Apps like MileIQ make this easy if you start using them consistently.

If you use the truck for both personal and business purposes, keep honest records of the split. The IRS has seen enough contractors claim 100% business use on a vehicle that’s also their daily driver. It raises flags and invites scrutiny you don’t want.

The best time to think about vehicle deductions is before you buy the truck, not at tax time. When your books are accurate and up to date, you can see your projected income and figure out whether a large purchase makes sense this year or next. That kind of planning is exactly what bookkeeping and tax services for contractors are built for. Without reliable numbers, you’re guessing at whether you can actually afford the truck and how much the deduction will save you.