If you buy a Range Rover for your business in 2026, you can potentially deduct the entire purchase price in the first year by combining two provisions: Section 179 expensing, which is capped at $32,000 for heavy SUVs, and 100% bonus depreciation, which can absorb whatever is left. The Range Rover tax write-off only works if the specific model exceeds 6,000 pounds gross vehicle weight rating, you use the vehicle more than 50% for business, and your active business income is high enough to absorb the deduction.
How Much You Can Deduct in 2026
Two separate tax provisions do the work. Section 179 lets you immediately expense qualifying business equipment instead of depreciating it. For 2026, the overall Section 179 limit is $2,560,000, but SUVs between 6,001 and 14,000 pounds have their own cap of $32,000.1Internal Revenue Service. Internal Revenue Bulletin: 2025-45 That cap alone won’t cover a six-figure Range Rover.
Bonus depreciation under Section 168(k) fills the rest. The One Big Beautiful Bill Act of 2025 restored 100% first-year bonus depreciation for qualified property acquired after January 19, 2025.2Internal Revenue Service. Treasury, IRS Issue Guidance on the Additional First Year Depreciation Deduction Amended as Part of the One Big Beautiful Bill Because vehicles over 6,000 pounds escape the annual depreciation caps that apply to lighter cars under Section 280F, bonus depreciation can cover whatever Section 179 leaves behind.
On a $120,000 Range Rover used entirely for business, the math looks like this:
- Section 179: $32,000 (the SUV cap)
- Bonus depreciation: $88,000 (100% of the remaining cost)
- Total first-year deduction: $120,000
Business use scales the whole thing linearly. Use the vehicle 75% for business and every figure above gets multiplied by 0.75, bringing the total deduction to $90,000.
For comparison, a passenger automobile at or under 6,000 pounds GVWR is capped at $20,300 in year one with bonus depreciation, $19,800 in year two, $11,900 in year three, and $7,160 each year after that.3Internal Revenue Service. Rev. Proc. 2026-15 The heavy-SUV path exists precisely because it sidesteps those limits.
Which Range Rover Models Qualify
Gross vehicle weight rating is the maximum total weight a vehicle is designed to carry, including passengers and cargo. It’s always higher than curb weight. The most reliable place to confirm GVWR is the safety compliance label on the driver-side door jamb; trim levels and engine packages can move the number, so the sticker on the specific vehicle matters more than a brochure.
Most full-size Land Rover and Range Rover models clear 6,000 pounds. The Range Rover Sport carries a gross vehicle weight of 3,220 to 3,450 kg depending on configuration, roughly 7,100 to 7,600 pounds.4Land Rover. Range Rover Sport Technical Specification 2025 The full-size Range Rover is heavier still. The Land Rover Defender comes in around 7,450 pounds GVWR, and the Discovery is similar.
The Range Rover Evoque is the notable exception at roughly 5,355 pounds GVWR. That puts it below the cutoff and treats it as a passenger automobile subject to the strict caps above. The Discovery Sport is likewise too light. Verify GVWR on the door sticker before signing anything.
Business Use Must Exceed 50%
Owning a heavy SUV isn’t enough. Section 280F requires more than 50% qualified business use during the tax year.5Office of the Law Revision Counsel. 26 USC 280F – Limitation on Depreciation for Luxury Automobiles At exactly 50% or below, you lose both Section 179 and bonus depreciation and drop to straight-line depreciation over a longer recovery period.
Your deduction is prorated to actual business use. Commuting, errands, and weekend trips all count against you. The IRS expects a contemporaneous mileage log recording the date, destination, business purpose, and miles for each business trip. Contemporaneous means recorded as trips happen, not reconstructed at tax time. This log is the single most important piece of documentation if the deduction is audited.
If Business Use Drops Later
The 50% test isn’t one-and-done. If business use falls to 50% or below in any year of the vehicle’s recovery period, you owe recapture tax. The IRS treats the difference between what you actually deducted and what straight-line depreciation would have allowed as ordinary income.6Internal Revenue Service. Publication 946, How To Depreciate Property On a vehicle where you claimed a six-figure first-year deduction, that recapture can be substantial. Report it on Form 4797 in the year usage drops.
The Business Income Limitation
Section 179 can’t exceed your taxable income from active business operations for the year.7eCFR. 26 CFR 1.179-2 – Limitations on Amount Subject to Section 179 Election If your business earned $50,000, you can’t apply a $120,000 Section 179 deduction against it. Any disallowed amount carries forward to future tax years indefinitely, so you don’t lose it permanently. Bonus depreciation is more flexible and can create or increase a net operating loss in a low-income year.
New, Used, Financed, or Leased
Section 179 applies to new and used vehicles alike, as long as the vehicle is new to your business. A certified pre-owned Range Rover qualifies. Financing works too—you deduct based on the full purchase price, not what you’ve paid down so far.
Leasing is different. A standard lease generally doesn’t qualify for Section 179 because you don’t own the vehicle; instead you deduct the lease payments as a business expense. Some lease-to-own arrangements can be treated as purchases for tax purposes, but that depends on the specific terms. If you’re structuring a deal around the deduction, buying or financing is cleaner.
You’re Locked Into Actual Expenses
Once you claim Section 179 or bonus depreciation on a vehicle, you’re stuck with the actual expense method for the life of that vehicle.8Internal Revenue Service. Topic No. 510, Business Use of Car The standard mileage rate (72.5 cents per mile for 2026) is off the table permanently. For a Range Rover with high fuel and maintenance costs, actual expenses usually win anyway, but run the numbers before you commit. There’s no switching back.
How to Claim the Deduction
The deduction goes on IRS Form 4562, Depreciation and Amortization, where you elect Section 179 and calculate bonus depreciation.9Internal Revenue Service. About Form 4562, Depreciation and Amortization The form asks for the cost of the property, the amount you’re expensing under Section 179, and business-versus-personal use details. Attach Form 4562 to your individual return (Schedule C for sole proprietors) or your business entity’s return (Form 1120 for corporations, Form 1065 for partnerships).
Before you file, have these ready:
- GVWR from the door jamb sticker or manufacturer specifications
- The Vehicle Identification Number
- Purchase price, including sales tax if applicable
- Date placed in service—the day you started using it for business, not the purchase date
- Your mileage log for the full tax year
Keep the purchase contract, financing documents, mileage log, and maintenance receipts for as long as you own the vehicle and several years beyond.10Internal Revenue Service. How Long Should I Keep Records
State Rules May Not Match
Not every state follows the federal Section 179 and bonus depreciation rules. Some cap Section 179 well below the federal limit, and several reduce or eliminate bonus depreciation. A full federal write-off doesn’t guarantee the same on your state return. Check your state’s conformity rules, or ask your tax preparer, before counting on a dollar-for-dollar match.