Bonus Depreciation is Back – What That Means for Business Owners
Big news for business owners…the latest legislation permanently reinstates 100% bonus depreciation for qualified property placed in service after January 19, 2025.
This means if you purchase eligible business assets, you may be able to write off the entire cost in the year you start using them, instead of spreading the deduction over several years.
Example: Plumbing Business Investing in a Fleet of Trucks
Let’s say you run a plumbing business and you purchase a new fleet of service trucks in 2025. As long as those trucks are placed in service after January 19, 2025, you may be eligible to deduct 100% of their cost right away rather than over the usable life of the truck, which for vehicles is usually around 5-7 years.
Whether the trucks are new or pre-owned, it doesn’t matter—as long as it’s the first time your business is using them.
Why This Matters
Immediate tax savings – Accelerate deductions instead of waiting years.
Cash flow boost – Keep more money in your business to cover payroll, marketing, or other expenses.
Smarter timing – If you’ve been planning to expand your fleet, 2025 could be the year to make it happen.
The Key Requirements
To qualify for this immediate write-off:
The trucks (or other property) must be used primarily for business purposes (at least 50% of the time).
It must be new to your business (first use by you)
It must be placed in service after January 19, 2025.
One Consideration - if you deduct this accelerated bonus depreciation and then sell the asset, you may be subject to depreciation recapture, so be strategic and talk to a tax advisor to get a full understanding of your specific asset and situation.
Final Thoughts
Bonus depreciation is designed to encourage investment in your business. If you’ve been considering making an investment in business vehicles and equipment, this could be a huge advantage for you.
👉 Thinking about a purchase like this? Let’s talk strategy and make sure you’re set up to maximize your tax savings.