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.

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.