🚗 Bonus Depreciation Rules for Vehicles – What Business Owners Need to Know in 2025 🚗
Not all vehicles are created equal when it comes to tax savings. Here’s how bonus depreciation plays out:
🔹 Heavy Vehicles (GVWR > 6,000 lbs.)
SUVs, pickups, and vans above this threshold can qualify for 100% bonus depreciation—a powerful deduction strategy for business owners.
🔹 Luxury Passenger Autos (GVWR ≤ 6,000 lbs.)
These vehicles are subject to luxury auto depreciation limits, capped as follows:
• 2025: $20,200 with bonus depreciation ($12,200 without)
• 2026: $19,600
• 2027: $11,800
• Each year after: $7,060
💡 Bonus depreciation applies only in the first year, so timing matters!
👉 The key takeaway: choosing the right vehicle for your business can make a big difference at tax time.
If you’re considering a vehicle purchase, make sure you understand whether it qualifies for full bonus depreciation or falls under luxury limits.

Video Script
Not all vehicles qualify for the same tax breaks. Here’s what business owners need to know about bonus depreciation in 2025. For heavy vehicles with a gross weight over 6,000 pounds, like many SUVs, pickups, and vans, you can still take advantage of 100% bonus depreciation in the first year. But for luxury passenger autos under 6,000 pounds, the IRS sets strict limits: $20,200 in 2025, $19,600 in 2026, $11,800 in 2027 and $7,060 each year after. Remember: bonus depreciation applies only in year one. Choosing the right vehicle could save your business thousands. This has been a tax saving tip from Accounting Solutions. Book a time to learn more.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.