Starting in 2025, the One Big Beautiful Bill Act (OBBBA) gives business owners a no-new-cash-outlay way to unlock significant deductions.

Here’s how:
Convert your personal-use vehicle to business use, and it’s treated as “placed in service” on the conversion date. Thanks to 100% bonus depreciation, you can deduct up to the vehicle’s full fair market value (no Section 179, but bonus applies automatically unless you opt out).

💡 Example:
Vehicle FMV = $30,000
Business use = 70%
Deduction = $21,000 on your 2025 tax return

Types of Vehicles
– Heavy SUVs, pickups, vans (GVWR > 6,000 lbs) = full deduction
– Smaller vehicles = still up to $20,200 first year

Rules to know:

• Deduct the lower of FMV or adjusted basis at conversion
• All assets in the same class are “in or out” for bonus depreciation

Selling later? Your gain/loss basis changes

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.