IRS Section 179 + Bonus Depreciation

The Heavy
Vehicle

How business owners legally write off 42% of a luxury truck or SUV in Year 1 — every qualifying vehicle, every number, every scenario.

42%
Truck Discount
33%
SUV Discount
$41,950
Max Saved @$100K
Section 01

How Section 179 Works

01

Section 179 Deduction

Deduct the purchase price immediately. SUVs capped at $30,500 (2025). Trucks with 6ft+ beds: NO CAP.

02

Bonus Depreciation

Whatever Section 179 doesn't cover, bonus depreciation takes 60% in 2025, phasing to 0% by 2028.

03

MACRS Depreciation

The rest depreciates over 5 years: 20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%.

Key Requirements

GVWR must exceed 6,000 lbs
Business use must exceed 50%
Placed in service during the tax year claimed
Any entity: sole prop, LLC, S-Corp, C-Corp
Used vehicles qualify (must be new-to-you)
Personal use portion is not deductible

Bonus Depreciation Phase-Down

80%
2024
60%
2025
CURRENT
40%
2026
20%
2027
0%
2028

SUV vs. Truck — Why Trucks Win

SUVCapped at $30,500
$100K SUV — Year 1 Deduction$77,760
Tax Savings (41.95%)$32,621
Effective Cost$67,379
Discount33%
TRUCK 6FT+ BEDNO cap
$100K Truck — Year 1 Deduction$100,000
Tax Savings (41.95%)$41,950
Effective Cost$58,050
Discount42%

At $100K, choosing a truck saves $9,329 more than an SUV.

Section 02

Every Price Point

2025 • 100% business use • 37% federal + 4.95% IL (41.95%)

PriceTypeSec 179Bonus 60%MACRS Yr1Yr1 DeductionTax SavedEff. CostDiscount
$50,000SUV$30,500$11,700$1,560$43,760$18,358$31,64237%
$50,000TRUCK$50,000$0$0$50,000$20,975$29,02542%
$75,000SUV$30,500$26,700$3,560$60,760$25,489$49,51134%
$75,000TRUCK$75,000$0$0$75,000$31,463$43,53742%
$100,000SUV$30,500$41,700$5,560$77,760$32,621$67,37933%
$100,000TRUCK$100,000$0$0$100,000$41,950$58,05042%
Section 03

Qualifying Vehicles

All >6,000 lbs GVWR. Used prices March 2026.

NO CAP Trucks with 6ft+ Bed

VehicleBedGVWRUsed PriceTax SavedEff. CostDiscount
Ford F-150 Lariat / King Ranch6.5ft7,050$35K–$50K$14.7K–$21K$20.3K–$29K42%
Ford F-250 Lariat / Platinum6.75ft10,000$50K–$90K$21K–$37.8K$29K–$52.2K42%
Ford F-350 Platinum / Limited6.75ft / 8ft11,500+$70K–$100K$29.4K–$42K$40.6K–$58K42%
RAM 1500 Laramie / Limited6.4ft6,900$30K–$50K$12.6K–$21K$17.4K–$29K42%
RAM 2500 Laramie / Limited6.4ft / 8ft10,000$50K–$85K$21K–$35.7K$29K–$49.3K42%
RAM 3500 Limited / Longhorn6.4ft / 8ft11,500+$70K–$100K$29.4K–$42K$40.6K–$58K42%
Chevy Silverado 2500HD High Country6.75ft10,000$50K–$70K$21K–$29.4K$29K–$40.6K42%
GMC Sierra 2500 Denali6.75ft10,000$48K–$70K$20.1K–$29.4K$27.9K–$40.6K42%
GMC Sierra 3500 Denali Ultimate6.75ft / 8ft11,500+$70K–$100K$29.4K–$42K$40.6K–$58K42%
Toyota Tundra Capstone6.5ft7,000$50K–$65K$21K–$27.3K$29K–$37.7K42%

* Raptor (5.5ft) and TRX (5.6ft) beds are under 6ft — verify trim. If bed < 6ft, the $30,500 SUV cap applies.

CAPPED Luxury SUVs

VehicleSeatsGVWRUsed PriceTax SavedEff. Cost
Mercedes G 550 / AMG G 635~7,000$86K–$135K$29K–$43K$57K–$92K
Mercedes GLS 5807~6,768$60K–$100K$21K–$33K$39K–$67K
Mercedes-Maybach GLS 6004–5~6,768$93K–$170K$32K–$55K$61K–$115K
BMW X7 / X7 M60i7~6,768$45K–$100K$16K–$33K$29K–$67K
Audi Q7 Prestige7~6,614$25K–$65K$11K–$22K$14K–$43K
Porsche Cayenne / Turbo5~6,261$40K–$100K$15K–$33K$25K–$67K
Lexus LX 6007~7,165$70K–$100K$24K–$33K$46K–$67K
Cadillac Escalade / ESV / V7–8~7,500$40K–$110K$15K–$36K$25K–$74K
Lincoln Navigator / L7–8~7,300$35K–$100K$13K–$33K$22K–$67K
Range Rover (LWB)7~6,500+$50K–$100K$18K–$33K$32K–$67K
Jeep Grand Wagoneer / L7–8~7,340$45K–$100K$16K–$33K$29K–$67K
Toyota Sequoia7–8~7,100$40K–$60K$15K–$21K$25K–$39K
Chevy Tahoe / Suburban7–9~7,100$25K–$65K$11K–$22K$14K–$43K
Rivian R1S7~7,700$55K–$85K$18K–$29K$37K–$56K

Green seat numbers = 7+ seater.

Section 04

7+ Seater Qualifying Vehicles

VehicleSeatsGVWRUsed ~$100KTax SavedEff. Cost
Mercedes GLS 580
V8 biturbo, Maybach platform
76,768$60K–$100K$21K–$33K$39K–$67K
BMW X7 M60i
Best driving dynamics, 523hp
76,768$70K–$100K$29K–$33K$41K–$67K
Cadillac Escalade V
682hp supercharged, 36" OLED
77,500$90K–$110K$31K–$36K$59K–$74K
Lexus LX 600
Toyota reliability, best resale
77,165$70K–$100K$29K–$33K$41K–$67K
Lincoln Navigator L Black Label
Ultimate luxury, extended
7–87,500$55K–$100K$23K–$33K$32K–$67K
Range Rover LWB
Autobiography, long wheelbase
76,500+$70K–$100K$29K–$33K$41K–$67K
Rivian R1S
Electric, adventure luxury
77,700$55K–$85K$18K–$29K$37K–$56K
Chevy Suburban High Country
Most cargo, up to 9 seats
7–97,500$40K–$65K$15K–$22K$25K–$43K
Section 05

How the Money Comes Back

It's not a rebate check. It's money you never pay to the IRS.

Lower Quarterly Payments

Self-employed / S-Corp: your estimated tax payments drop immediately. Money stays in your account.

Tax Refund at Filing

If you overpaid via W-2 or estimates, the savings show up as a refund — 2-4 weeks after e-filing.

Offset Tax Owed

Owe $80K without the truck? You'd owe $38K with it. The $42K stays in your bank.

WhenWhat HappensCash Impact
July 2025Buy $100K truck-$100,000
Sept 15, 2025Q3 estimated payment reduced+~$16,000
Jan 15, 2026Q4 estimated payment reduced+~$14,000
April 15, 2026File return — remaining credit as refund+~$11,950
Net by April 2026$41,950 recovered over ~9 months-$58,050 total
Section 06

How Many Times Can You Do This?

Unlimited
Vehicles per year
Every Year
Fresh cap annually
$1.22M
2025 annual cap
Stackable
Multiple same year
YearActionDeductionTax Saved
2025Buy $100K truck$100,000$41,950
2027Trade in, buy another$100,000$41,950
2029Trade again$100,000$41,950
5-Year Total3 trucks$300,000$125,850

What Triggers an Audit

● Claiming 100% business use on multiple vehicles
● Buy-and-sell in short windows
● No mileage log to back up business use %
● Vehicle doesn't match your business

Keep a mileage log. MileIQ or Everlance do it automatically.

Section 07

The Resale Trap

Can you buy, deduct, and flip? No. Depreciation recapture kills it.

Sell for $60K (depreciates)

Buy
-$75,000
Tax Saved
+$31,463
Sell
+$60,000
Recapture Tax
-$25,170
Net:-$8,707 LOSS

Sell for $75K (holds value)

Buy
-$75,000
Tax Saved
+$31,463
Sell
+$75,000
Recapture
-$31,463
Net:$0 BREAK EVEN

The Only Ways to Win

1.Use it and keep it. A $75K truck costs $43.5K effective.
2.Sell in a low-income year. Buy at 37%, recapture at 22%.
3.Die with it. Stepped-up basis eliminates recapture.
4.Trade in. Defers recapture, keeps the cycle going.
Section 08

Interactive Calculator

50%100%100%
IL default 4.95%
Yr 1 Deduction
$0
Tax Savings
$0
Effective Cost
$0
Discount
0%
YearSec 179BonusMACRSTotalTax Saved
TOTAL

The Bottom Line

Section 179 is a cash flow accelerator. Instead of deducting over 6 years, you get it all in Year 1. That money in your pocket today earns returns, funds your business, or eliminates debt.

42%
Truck
33%
SUV @$100K
Every Year
No limit
0%
Resale profit

For educational purposes only. Consult a CPA.

OZ3 Automation — March 2026