Question 1

How to Calculate Bonus Depreciation for 2025 Vehicles?

Accepted Answer

Bonus depreciation in 2025 allows businesses to deduct up to 100% of the cost of qualifying assets like heavy SUVs in the first year, per the Big Beautiful Bill Act (OBBBA) extending Trump's TCJA rules. Start with your vehicle's purchase price (must be new/used, placed in service after Jan 19, 2025). Apply Section 179 first (capped at $31,300 for heavy SUVs >6,000 lbs GVWR), then 100% bonus on the remainder.

Question 2

How Much Bonus Depreciation Do I Qualify For in 2025?

Accepted Answer

Eligibility requires >50% business use and GVWR >6,000 lbs (e.g., Cybertruck, Escalade). Under OBBBA, it's 100% on qualified property up to $1.2M overall Sec 179 limit. For heavy SUVs, full price minus $31,300 Sec 179 cap, then bonus the rest—potentially 100% write-off.

Question 3

What SUVs Qualify for Bonus Depreciation in 2025?

Accepted Answer

Any SUV/truck with GVWR >6,000 lbs qualifies for the $31,300 Sec 179 cap + 100% bonus (e.g., Tesla Cybertruck AWD 6,800 lbs, Rolls-Royce Cullinan 7,225 lbs, Ford F-150 Raptor 7,150 lbs). Luxury auto limits ($20,500) don't apply.

Question 4

What Did Trump Change with Bonus Depreciation in 2025?

Accepted Answer

In 2025, President Trump's Big Beautiful Bill Act (OBBBA) restored 100% bonus depreciation for assets acquired after Jan 19, reversing the 40% limit. It stacks with Sec 179 for full first-year expensing on heavy vehicles.

Question 5

Does Bonus Depreciation Roll Over to the Next Tax Year?

Accepted Answer

Yes, if the deduction exceeds your income, it creates a Net Operating Loss (NOL) that carries forward indefinitely to offset up to 80% of future taxable income (no carryback post-TCJA/OBBBA).

Question 6

Can I Use Bonus Depreciation on Used Vehicles in 2025?

Accepted Answer

Absolutely—OBBBA/Tax Cuts 2.0 allows 100% bonus on qualified used property (first use by you, not prior owner). Applies to heavy SUVs like a pre-owned Range Rover (>6,000 lbs GVWR).

Question 7

What Are the Business Use Requirements for Vehicle Deductions?

Accepted Answer

IRS mandates >50% business mileage for full bonus/Section 179. Track via app/logbook (odometer readings, purpose). Drops below 50%? Recapture prior deductions as income.

Question 8

How Does State Conformity Affect My 2025 Bonus Depreciation?

Accepted Answer

35+ states fully conform (e.g., NY, CO: 100% state deduction), 10+ limited (e.g., CA: Sec 179 only, add-back bonus), and 7 none (e.g., TX: no income tax). Our calculator auto-adjusts.

Question 9

Is There Recapture If I Sell the Vehicle Early?

Accepted Answer

Yes, under Sec 1245: Gain on sale recaptured as ordinary income (up to depreciation claimed). With 100% bonus, basis = $0, so full gain taxed.

Question 10

Can Bonus Depreciation Create a Loss for My Business?

Accepted Answer

Yes—unlike Sec 179 (income-limited), 100% bonus has no cap, so it can generate NOLs carried forward. Ideal for startups.

Federal Tax Breakdown: