If you’re a business owner considering purchasing a vehicle, you may qualify for significant tax deductions. By strategically using a heavy vehicle alongside a qualifying home office, you can optimize your tax savings. McFadden Accounting is here to help you navigate these deductions and ensure you get the most out of your business expenses.

Heavy Vehicle Tax Deductions

In 2025, businesses can take advantage of several tax breaks when purchasing heavy vehicles:

Q2, or Q3 of 2021:

1. Section 179 Expensing: Deduct up to $1,250,000 of qualifying business equipment, including heavy vehicles. SUVs have a limit of $31,300, while pickups and vans meeting specific criteria are not subject to this cap.
2. Bonus Depreciation: Claim a 40% first-year depreciation deduction on qualifying heavy vehicles
3. Business-Use Requirement: The vehicle must be used for business at least 50% of the time to qualify for deductions.

A heavy vehicle is classified as one with a gross vehicle weight rating (GVWR) of over 6,000 pounds. This includes certain SUVs, pickups, and vans. Lighter vehicles have much lower annual depreciation limits, reducing potential tax benefits.

Home Office Deductions: Turning Commuting Miles into Business Miles

A qualifying home office can convert commuting miles into business miles, making it easier to meet the 50% business-use test for vehicle deductions. To qualify, your home office must be used regularly and exclusively for your business and serve as:

• Your primary income-generating space, or
• The location where you perform most administrative tasks.

By establishing a legitimate home office, you can further maximize your tax deductions while keeping track of your business-related vehicle use.

Example: How Much Can You Save?

Consider this scenario: If you purchase a $90,000 heavy SUV and use it 100% for business, you could deduct $61,824 in first-year depreciation and Section 179 deductions. If you opt for a qualifying pickup truck, you could deduct the full $90,000 in Year One under Section 179.

For Business Owners and Corporate Entities

If you own a vehicle personally but operate as a corporation, ensure your corporation reimburses you for business use to capture the full tax benefit. McFadden Accounting specializes in corporate tax strategies, ensuring that business owners properly document and claim vehicle and home office deductions.

Get Expert Guidance from McFadden Accounting

Navigating tax deductions can be complex, but you don’t have to do it alone. McFadden Accounting can help you determine your eligibility, optimize your deductions, and ensure IRS compliance.

Call us today to schedule a consultation and maximize your tax savings!