Tax Deduction for Classic or Antique Cars Used in Business

If you use a classic or antique car in your business, you may be able to deduct it just as you would a newer business vehicle.

Business Use Is the Key

The key requirement is business use. A vehicle must be subject to wear and tear, decline, or exhaustion, and you must use it in your trade or business. Courts have allowed depreciation deductions for valuable antique assets used in business, even when those assets appreciated in value. This can make using a classic car for business an interesting alternative to using a new vehicle. For example, a 1972 Pontiac GTO used in business may qualify for depreciation just like a 2026 Lexus IS. Current law generally treats new and used vehicles the same for depreciation purposes.

Understand the Depreciation Limits

However, passenger automobiles remain subject to the luxury-auto depreciation limits. For vehicles placed in service in 2026 and eligible for bonus depreciation, the first-year deduction is capped, so you generally cannot deduct the full purchase price in Year One. The potential advantage of a classic car is economic. While repairs and operating costs may be higher, the vehicle may hold or increase its value far better than a new car.

How We Can Help

Sterling Tax and Accounting is here to help your business with tax planning!  Our comprehensive approach to tax planning helps reduce your overall tax liability and keep more money in your pocket.  If all your accountant does is file your taxes, chances are they are making you pay more than your fair share of taxes.

Learn how to proactively save on taxes by scheduling a call with our tax planning specialists. Our tax planning, accounting & business services help you stay on track. Sterling Tax & Accounting will work with you to optimize your business and minimize your taxes. We will work to provide you and your business with the tools and resources you need to build a solid tax and business foundation. We’re a trusted CPA Firm in Sarasota, Florida. We serve clients all over the US, and proactively work to minimize their taxes. Welcome to the Sterling Standard of business!  Want to learn more?  Schedule a meeting with our tax planning team.