🟢 Uncle Sam Wants You To Buy A Truck

Issue # 133

Hey everyone, Kern here filling in for Bernardo this week.

He’s stepping away for the best possible reason. He and his wife are expecting their first child any day now. If you’re a dad, you remember that moment — equal parts joy, nerves, and very little sleep. Let’s all wish him well. Feel free to hit reply and send him some encouragement or your best first-time parenting advice. I know he’d appreciate it.

Now onto this week’s issue. We’ve got a big one and I’m not just talking about SUVs.

The new tax code just dropped and if you're a business owner it might feel like Uncle Sam wants to buy your next truck or SUV. Seriously. The updated Section 179 deduction could make this a very good time to upgrade your ride.

Speaking of which, I got a surprising trade-in offer on my 2023 Sequoia and it's got me thinking. Do I keep what’s already working or go all in on something new I’ll break down the pros and cons and ask for your advice.

Plus a quick rundown of news, recalls, and industry updates you’ll want to keep an eye on.

Let’s get into it.

Market New

• Ram’s Mystery Compact Truck Finally Revealed—Unibody & Launch Date!

• U.S. EV Sales Could Spike, Then Collapse—Subsidy Expiration Looms

• Volvo Halts Sedan & Wagon Sales in U.S. Over Soaring Tariffs

• Uber to Drop $300M on Lucid Robotaxis — The Future of Ride-Sharing Is Here!

• Big Names Exposed: U.S. Safety Agency to Cut 25% of Staff—Auto Safety Impact?

Safety and Recalls

• Urgent Brake Fix: 11,500+ Volvo Owners Must Act Now!

• Ford Recalls Nearly 700K SUVs Over Fuel Leak—Risk of Fire!

• GM Recalls 62K Silverado Medium‑Duty Trucks Over Brake Fire Hazard

• NHTSA Launches Recall Investigation into 299K Stellantis Cars for Shifter Defect

My 2023 Sequoia Still Runs Great—So Why Am I Considering the 2025?

One tempting offer, a new tax break, and a serious case of SUV indecision

By Kern Campbell

Earlier this week, I got an offer from my local dealership that made me pause and really think. It was for a trade-in upgrade from my 2023 Toyota Sequoia Limited to a 2025 Sequoia Limited. Same trim. Same engine. Pretty similar setup.

But it got the wheels turning. If I’m going to consider swapping into a new SUV, maybe I shouldn’t just go lateral. Maybe it’s worth looking at the Platinum trim instead, with the massaging seats and articulating running boards that make it easier for family and older passengers to get in and out.

If you’re going to upgrade, why not get a few more features while you’re at it?

And then there’s the big wildcard this year. The reinstated Section 179 tax deduction thanks to Congress’s latest move, informally dubbed The Big Beautiful Bill. For business owners like me, it could mean writing off a big chunk of the purchase if I make the move before the end of the year.

So now I’m asking myself the question: do I actually need a new SUV, or am I just looking for a reason to scratch that new car itch?

What I Use My Sequoia For

Let’s start with the real-world use. My current Sequoia is a workhorse and handles a lot.

• Routine six-hour round trips to meetings or events

• Fall Saturdays full of college football, friends, and tailgate gear

• Summer weekends at the beach, usually with both dogs and our two teenage daughters

• Road trips, including an upcoming eight-hour drive to take our oldest to college out of state

• Local daily driving to my office, which is only about three miles away

• Golf weekends with friends and family road outings where comfort matters

Basically, I need a full-size SUV that’s reliable, roomy, easy to park in tight stadium lots, and comfortable enough for long drives with a full crew.

What I Like About My 2023 Sequoia

The 2023 Sequoia has done its job well. Toyota’s hybrid V6 has been solid. I’ve had no issues to speak of and the gas mileage is pretty reasonable considering the size. I like the driving position, and it’s comfortable for long hauls.

But it’s not perfect. The cargo space is tight, especially behind the third row. Rear visibility is just OK. And while the ride is smooth, it’s not exactly luxurious. It gets the job done, but there are a few things I’d like more of if I’m signing up for another multi-year commitment.

What’s New for 2025

The 2025 Sequoia isn’t a major redesign, but it brings some useful upgrades.

• An improved infotainment experience

• Slight styling refresh inside and out

• Smoother ride, especially in upper trims

• Good dealership inventory, which could mean better pricing power

Dealers seem to have more units than expected. That’s usually a green flag for stronger negotiating power, especially if I’m considering the higher Platinum trim.

What I Would Gain by Going Platinum

If I go for it, I’m not just doing a one-for-one swap. The Platinum trim has some real appeal.

• Massaging front seats, which would be a blessing on long drives

• Power-extending running boards to make entry and exit easier for my parents and in-laws

• More premium interior materials

• Slightly upgraded suspension for a smoother ride

These are all features I would use and appreciate, especially with our road trip-heavy lifestyle.

Other SUVs I’m Considering

Of course, once I started looking around, I had to check out the competition too.

Chevy Suburban / GMC Yukon XL

• Big space. Great for hauling tailgate gear or luggage. I like the design, especially the Yukon Denali.

• But I’ve read too many reports about engine problems. The diesel version seems to be the safer play, but availability and cost are question marks.

Ford Expedition MAX

• Strong engine, comfortable ride, good third-row space

• Resale value trails Toyota, and the interior design doesn’t excite me

Jeep Grand Wagoneer

• Basically a luxury hotel room on wheels

• But fuel economy is rough and long-term reliability is a concern

Nissan Armada

• Lower cost, simple V8 power

• Feels outdated inside and out. Not really what I want for longer trips or family comfort

What About Depreciation and Reliability?

Toyota has the edge on long-term reliability, no question. That’s a big part of why I bought the Sequoia in the first place. GM’s depreciation and engine concerns give me pause, even if I like the extra space of the Yukon XL. The diesel option might help with both, but it's hard to find and not cheap.

Ford’s EcoBoost engine is powerful, but the long-term resale on the Expedition doesn’t inspire confidence. Jeep and Nissan are wildcards—plush or cheap, but neither checks all my boxes.

With the Sequoia, I know what I’m getting. If the 2025 Platinum delivers a better ride and adds the comfort features I’ve been missing, it might be worth stepping up rather than sideways.

So Should I Do It?

If I can negotiate a good deal on a 2025 Platinum, take advantage of the Section 179 deduction, and get a few new features that make real difference on road trips and family outings, this could be a smart move.

On the other hand, my 2023 is in excellent shape. No issues. No payments beyond what I’ve planned for. It still does everything I need it to.

So I’m torn. Not in a rush, but watching the market closely.

Your Turn: What Are You Driving?

If you’ve recently bought a 2025 Sequoia, a Yukon XL (especially the diesel), or any other full-size SUV, I want to hear from you.

How’s it driving? Is it as reliable as you hoped? Any regrets?

Just hit reply to this email and let me know. I read every message, and your input might help me decide whether to stick or switch.

Talk soon,
Kern Campbell

P.S. If you’re driving a diesel Yukon or Suburban, especially one that’s been reliable, I’d love to know how it’s holding up. Please hit reply to the email and let me know. Thanks in advance!

Video Of The Week

Here’s a video where I share all that has gone wrong with my 2023 Sequoia at the 2 year mark of ownership! Thought it may be helpful related to the above article.

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In The Know

How a $70,000 Pickup Becomes a $0 Tax Line Item

Section 179’s new 2025 limits—fueled by the Big Beautiful Bill—let businesses claim massive write-offs on trucks and heavy vehicles.

Business owners who need a new work truck or company car just got a massive tax break, and most don't even know it yet. The One Big Beautiful Bill Act, signed into law on July 4, 2025, expanded Section 179 expensing to let us write off the full cost of qualifying vehicles in the year we buy them, potentially saving thousands on our tax bill.

We've been tracking these changes since the bill passed, and the vehicle tax benefits are honestly pretty impressive. Between the boosted Section 179 limits and new depreciation rules, buying or leasing that work vehicle we've been putting off could make serious financial sense right now.

The key is understanding which vehicles qualify, how the buy versus lease math works out, and what planning moves we need to make before December 31st. Let's break down exactly how these new tax provisions can put money back in our pockets.

How Section 179 Works for Vehicle Purchases

The Section 179 deduction allows businesses to reduce taxable income by writing off the full purchase price of qualifying vehicles in the year they buy them. We need to understand vehicle weight requirements, timing rules, and how this differs from bonus depreciation to maximize our tax savings.

Eligible Vehicles and Limits

Here's where things get interesting for us truck and SUV lovers. The IRS has specific rules about which vehicles qualify for the full Section 179 expense deduction.

Weight Requirements:

• Vehicles over 6,000 pounds gross vehicle weight rating (GVWR) qualify for the full deduction

• Cars and light trucks under 6,000 pounds face a $19,200 limit for 2025

Most of our favorite work trucks make the cut easily. Think F-150s, Silverados, Tahoes, and Suburbans. Even some crossovers like the Honda Pilot or Toyota Sequoia hit that 6,000-pound mark.

The Section 179 deduction limit is $2,500,000 in 2025 and $4,000,000 in 2026 for total equipment purchases. That's plenty of room for most of us buying business vehicles.

We must use the vehicle more than 50% for business purposes. Keep good records of business miles versus personal use. The IRS isn't messing around with this requirement.

Property Placed in Service Rules

Timing matters with Section 179. We can only claim the deduction when we actually put the vehicle into service for our business.

Key Timing Rules:

• The vehicle must be purchased and used for business in the same tax year

• December 31st is the deadline for claiming the current year's deduction

• We can't claim Section 179 on vehicles bought but not yet used

If we buy a truck in November but don't start using it until January, we wait until the following tax year. The IRS considers property placed in service when it's ready and available for its intended use.

We also need to continue using the vehicle primarily for business. If business use drops below 50% in later years, we might have to pay back some of the deduction. This is called recapture, and it's not fun.

Section 179 vs Bonus Depreciation

Both options let us write off vehicle costs faster than regular depreciation, but they work differently.

Section 179 Benefits:

• Immediate 100% deduction in year one

• No income phase-out for most small businesses

• We choose which assets to apply it to

Bonus Depreciation:

• Also allows 100% first-year deduction through 2026

• Applies automatically to qualifying property

• No business use percentage requirement

We can actually combine both methods. Use Section 179 first, then apply bonus depreciation to remaining eligible purchases. This strategy helps us maximize our total tax deductions.

The big difference is control. Section 179 lets us pick and choose which vehicles to expense immediately. Bonus depreciation happens automatically unless we opt out.

Breaking Down the One Big Beautiful Bill Act

The One Big Beautiful Bill Act makes several Tax Cuts and Jobs Act provisions permanent while boosting Section 179 limits to $2.5 million and resetting bonus depreciation to 100%. The qualified business income deduction also gets a bump from 20% to 23%.

Permanent Tax Cuts and Extensions

We've been living with uncertainty about whether key business tax breaks would stick around. The One Big Beautiful Bill Act puts that worry to rest by making several TCJA provisions permanent.

Key permanent extensions include:

• 37% top individual income tax rate

• Higher alternative minimum tax exemptions

• Qualified business income deduction (with improvements)

• Enhanced standard deduction amounts

The bill also makes the excess business loss limitation permanent. This means if you're running a pass-through business and take losses, those "excess" losses get carried forward instead of offsetting other income right away.

For us gearheads running auto shops, restoration businesses, or any vehicle-related enterprise, this stability means we can plan long-term investments without worrying about tax rules changing every few years.

Expansion of Section 179 and Bonus Depreciation

This is where things get exciting for vehicle purchases. The OBBBA increases Section 179 expensing limits to $2.5 million with a $4 million phaseout threshold.

Section 179 improvements:

• Expensing limit jumps from $1.25 million to $2.5 million

• Phaseout threshold rises from $3.13 million to $4 million

• Covers equipment, vehicles, and qualified improvement property

Bonus depreciation gets reset to 100% for eligible property acquired after January 19, 2025, and before January 1, 2030. We were facing just 40% bonus depreciation in 2025 under the old rules.

The combination means if you buy a $60,000 work truck, you could potentially deduct the entire amount in year one. That's serious cash flow improvement for growing businesses.

Impact on Qualified Business Income Deduction

The QBI deduction gets a nice boost under the new law. Instead of the current 20% deduction, eligible business owners can now claim 23% starting in 2026.

QBI enhancements:

• Deduction increases from 20% to 23%

• Becomes permanent (no more sunset dates)

• Still applies to pass-through entities like S-corps and partnerships

This matters if you're running an LLC auto repair shop or partnership restoration business. That extra 3% might not sound like much, but on a $200,000 qualifying business income, it's an additional $6,000 deduction.

The income limits and other QBI restrictions still apply. But knowing this deduction is permanent lets us make long-term business decisions without tax uncertainty hanging over our heads.

The Big Beautiful Bill's Vehicle Tax Perks

The Big Beautiful Bill delivers some serious cash back to business owners buying work vehicles. We're talking about boosted Section 179 limits and permanent bonus depreciation that can put thousands back in your pocket.

Higher Section 179 Dollar Limits

The Big Beautiful Bill cranked up the Section 179 expense limits significantly. We can now deduct up to $1.29 million for qualifying business property in 2025, with the phase-out threshold jumping to $3.22 million.

This matters big time for work trucks and commercial vehicles. Instead of spreading depreciation over several years, we get to write off the full purchase price immediately when the property is placed in service.

Key Section 179 Benefits:

• Immediate full deduction for qualifying vehicles

• Higher dollar thresholds mean more vehicles qualify

• No waiting years to see tax benefits

• Works for both new and used business vehicles

The beauty of Section 179 is its simplicity. Buy a $60,000 work truck in December, deduct the full amount on that year's taxes. It's that straightforward.

100% Bonus Depreciation Made Permanent

One of the biggest wins in the Big Beautiful Bill is making 100% bonus depreciation permanent. This was set to phase out, but now it's here to stay.

Bonus depreciation lets us write off the full cost of qualifying business property in the first year. Unlike Section 179, there's no dollar limit cap to worry about.

Bonus Depreciation Advantages:

• No annual dollar limits

• Applies to new property only

• Stacks with Section 179 for maximum benefit

• Covers heavy-duty trucks over 6,000 pounds

This is huge for contractors and business owners buying multiple vehicles. We can combine Section 179 and bonus depreciation for serious tax deductions on fleet purchases.

Benefits for Leased vs Purchased Vehicles

The tax perks work differently depending on whether we lease or buy our business vehicles. Purchase gives us the biggest upfront tax hit, while leasing spreads benefits over time.

Purchased Vehicles:

• Full Section 179 or bonus depreciation deduction

• We own the asset and any equity

• Maximum first-year tax benefits

Leased Vehicles:

• Monthly lease payments are deductible

• Lower upfront costs and cash flow impact

• No depreciation benefits since we don't own the vehicle

For most business owners, purchasing wins on pure tax benefits. But leasing might make sense if cash flow is tight or we like switching vehicles every few years.

Who Qualifies and What Vehicles Count

Not every business owner can grab these tax benefits, and not every vehicle makes the cut. The IRS has specific rules about who qualifies and which rides actually count as qualified production property for Section 179 deductions.

Qualified Small Business Criteria

We need to be honest about something right up front. The IRS doesn't hand out tax breaks to just anyone who buys a truck.

Business use comes first. Our vehicle must be used more than 50% for business purposes across all taxable years. This isn't a suggestion or a rough estimate. We need detailed mileage logs showing every business trip.

Keep records of dates, destinations, business purposes, and miles driven. If our business use drops below 50% in any year during the vehicle's recovery period, we face recapture rules. That means previously claimed deductions get added back to our taxable income.

Entity structure matters too. Sole proprietorships, partnerships, S-corps, and C-corps can all claim Section 179 deductions. Each entity type has different rules for how the benefits flow through to owners.

The enhanced 2025 Section 179 limits cap annual deductions at $2.5 million. The deduction phases out when total equipment purchases exceed $4 million per year.

Types of Vehicles and Special Exceptions

Weight rules everything when it comes to Section 179 vehicle deductions. We're looking for that magic number: 6,000 pounds Gross Vehicle Weight Rating (GVWR).

Heavy SUVs get limited treatment. If our SUV weighs between 6,000 and 14,000 pounds GVWR, we can only deduct $31,300 through Section 179. Think Chevy Tahoe, Ford Expedition, or Cadillac Escalade.

Pickup trucks often qualify for full deductions. A Ford F-250 with an 8-foot bed typically qualifies for the complete Section 179 deduction because it's designed primarily for business use, not passenger transport.

Commercial vans hit the jackpot. Cargo vans, delivery trucks, and commercial vehicles over 6,000 pounds usually qualify for full Section 179 treatment up to the annual limit.

We can find GVWR on the manufacturer's label inside the driver's door jamb or in the owner's manual. Vehicles that qualify for Section 179 include both new and used purchases, as long as they meet the weight and business use requirements.

Tax Planning Tips: Buy vs Lease Under New Rules

The new tax landscape gives us more flexibility than ever when deciding between buying and leasing a business vehicle. Smart timing and understanding how pass-through entities work can make the difference between decent tax savings and truly impressive ones.

Maximizing Tax Deductions

When we buy a qualifying vehicle, we can claim the full Section 179 deduction in the year we purchase it. This works best for vehicles over 6,000 pounds GVWR, like most pickups and SUVs we actually want to drive.

The math gets interesting fast. A $70,000 pickup truck can generate a $70,000 deduction in year one if we buy it. That same truck leased might only give us $800-1,200 monthly payment deductions.

Key buying advantages:

• Immediate full deduction up to annual limits

• No mileage restrictions

• Build equity in the asset

• Better for vehicles we plan to keep long-term

Leasing works differently but has its own perks. We can deduct lease payments throughout the lease term, which helps with cash flow. The tax benefits of leasing include more predictable monthly deductions and lower upfront costs.

Leasing advantages:

• Lower initial cash outlay

• Consistent monthly deductions

• Always driving newer vehicles with warranties

• No depreciation concerns

Timing Your Vehicle Purchase

December 31st is our friend when it comes to Section 179 deductions. We can buy a vehicle on the last day of our taxable year and still claim the full deduction for that entire year.

This timing strategy works especially well when we have a profitable year and need to reduce taxable income quickly. Many of us have discovered that a late-year truck purchase can drop us into a lower tax bracket.

Best timing scenarios:

• High-income years when we need deductions

• Before tax law changes take effect

• When interest rates favor buying over leasing

• End of model years for better pricing

The Big Beautiful Bill's permanent inflation indexing means we don't have to worry about expiration dates anymore. Section 179 limits will adjust automatically for inflation starting in 2026.

We should also consider our business cash flow cycles. If we typically have strong fourth quarters, that December purchase might work perfectly. But if cash is tight at year-end, leasing with monthly payments might make more sense.

Pass-Through Entity Strategies

Pass-through entities like LLCs and S-Corps get the most benefit from Section 179 deductions. The deduction flows through to our personal tax returns, where it can offset other income.

This is where tax planning for pass-through entities gets really powerful. We can coordinate vehicle purchases with our overall tax strategy across multiple income sources.

Pass-through advantages:

• Deductions offset personal income

• Flexibility in timing purchases

• Can layer with other business deductions

• Works with both itemized and standard deductions

The phase-out rules matter more for pass-through entities. Once total equipment purchases exceed about $2.8 million, our Section 179 deduction starts shrinking dollar-for-dollar.

Most of us won't hit that limit, but it's worth tracking if we're planning major equipment purchases alongside our vehicle purchase. We might need to spread purchases across multiple taxable years to maximize benefits.

Remember that pass-through entity income affects our ability to use these deductions. We need sufficient business income to absorb the deduction in the year we claim it.

Other Key Tax Changes Affecting Business Owners

The Big Beautiful Bill doesn't stop at vehicle purchases. We're seeing major shifts in business interest deductions, excess business loss rules, and state tax deduction limits that could put real money back in our pockets.

Business Interest Deduction Updates

The section 163(j) rules got a serious makeover, and it's about time. Under the old system, we could only deduct business interest up to 30% of our adjusted taxable income.

Now we're looking at some breathing room. The business tax provisions of the Big Beautiful Bill expanded these limits for many businesses.

EBITDA vs EBIT calculation changes:

• 2022-2026: Interest limited to 30% of EBIT (earnings before interest and taxes)

• 2027 and beyond: Back to 30% of EBITDA (earnings before interest, taxes, depreciation, and amortization)

This matters if we're financing equipment or real estate. EBITDA typically gives us a higher number to work with than EBIT.

Small businesses with average gross receipts under $29 million over three years dodge this limitation entirely. That's most of us running dealerships, repair shops, or equipment rental businesses.

Excess Business Losses and Net Operating Losses

The limitation on excess business losses was supposed to expire, but Congress extended it through 2028. This caps our annual business loss deductions at $289,000 for single filers and $578,000 for married couples filing jointly.

Any excess business losses above these thresholds get treated as net operating losses. We can carry them forward to future tax years instead of deducting them immediately.

Net operating loss rules also got tweaked. We can now carry these losses forward indefinitely, but they're limited to 80% of taxable income in any given year.

Here's what this means for our vehicle-heavy businesses:

• Large equipment purchases might push us over the excess loss threshold

• We need to plan timing of major purchases more carefully

• Consider spreading big acquisitions across multiple tax years

The key business tax changes help offset some of these limitations with expanded Section 179 and bonus depreciation.

State and Local Tax Deduction (SALT) Changes

The SALT deduction cap got some relief, though not as much as many hoped. The $10,000 limitation on state and local tax deductions remains, but there are new workarounds.

SALT cap adjustments include:

• Increased to $15,000 for married filing jointly

• Indexed for inflation starting in 2026

• Special provisions for business property taxes

Business owners in high-tax states like California, New York, and New Jersey will still feel the pinch. However, we can now deduct state and local taxes paid on business property separately from the personal SALT limitation.

This creates planning opportunities. We might structure vehicle purchases through our business entity to take advantage of the business property tax deduction while staying under the personal SALT cap.

The changes don't solve everything, but they give us more flexibility in managing our total tax burden across federal, state, and local levels.

Frequently Asked Questions

Understanding the tax benefits for business vehicle purchases can feel overwhelming, but we've tackled the most common questions owners ask us. The key details revolve around weight requirements, proper documentation, and maximizing both Section 179 and bonus depreciation benefits.

What kind of business vehicles qualify for tax deductions under Section 179, and how does weight play into it?

Weight is everything when it comes to Section 179 vehicle deductions. We need our business vehicles to have a Gross Vehicle Weight Rating (GVWR) of over 6,000 pounds to qualify for the full deduction benefits.

Here's where it gets interesting. Vehicles under 6,000 pounds face much stricter luxury vehicle limits. We're talking about annual depreciation caps that can stretch deductions over several years instead of getting that immediate write-off.

For SUVs between 6,000 and 14,000 pounds, we hit a special limitation. The Section 179 deduction caps at $31,300 for these vehicles in 2025, thanks to IRS rules designed to prevent abuse.

Trucks and vans over 6,000 pounds typically avoid this SUV limitation. They can qualify for the full Section 179 treatment, assuming they meet all business use requirements.

The business use test matters too. We need to use the vehicle for business purposes more than 50% of the time to qualify for any Section 179 benefits.

Can you walk me through the steps to take advantage of the Section 179 deduction when purchasing a new company car?

First, we need to verify our vehicle meets the weight and business use requirements. Check that GVWR sticker and make sure we're planning legitimate business use for more than half the vehicle's annual mileage.

Next, we complete IRS Form 4562 when filing our tax return. This form is where we elect to take the Section 179 deduction and specify which assets qualify.

Documentation becomes critical at this point. We need to keep detailed records of the purchase price, financing terms, and the exact date we placed the vehicle in service.

Business use percentage tracking starts immediately. We should maintain a mileage log that clearly separates business miles from personal use throughout the year.

The vehicle must be placed in service by December 31st of the tax year we want to claim the deduction. Simply ordering or paying for it isn't enough.

What are some common pitfalls or misunderstandings when using Section 179 for vehicle purchases, and how can I avoid them?

The biggest mistake we see is assuming all large vehicles automatically qualify for unlimited deductions. That SUV limitation catches many business owners off guard.

Another trap involves insufficient business income. Section 179 deductions can't exceed our business's taxable income for the year. If we don't have enough profit, we can't use the full deduction.

Personal use creep is a silent killer. We might start with legitimate business intentions, but if personal use exceeds 50%, we could face recapture requirements on previously claimed deductions.

Poor record keeping causes headaches during audits. We need contemporaneous mileage logs, not reconstructed records created after the fact.

Some owners forget about state tax implications. While federal rules might allow the deduction, individual states may have different requirements or limitations.

How does the 'bonus depreciation' aspect of The Big Beautiful Bill enhance the benefits of Section 179 for vehicle acquisition?

The One Big Beautiful Bill Act restored 100% bonus depreciation, which works alongside Section 179 to maximize our immediate tax benefits.

Here's how it works in practice. If our vehicle purchase exceeds Section 179 limits, we can apply bonus depreciation to the remaining amount for potentially complete first-year write-offs.

For example, if we buy a $100,000 truck and use the full Section 179 deduction, any remaining cost can potentially be written off through bonus depreciation.

This combination is particularly powerful for heavy equipment and specialized vehicles that cost well above traditional Section 179 limits.

The timing matters. Both deductions apply to property placed in service during the tax year, so planning purchases around year-end becomes crucial.

Are there any limits or caps I should be aware of when using Section 179 to write off the purchase of a heavy vehicle for my business?

The 2025 Section 179 deduction limit is $2.5 million, up significantly from previous years thanks to The Big Beautiful Bill Act.

We also need to watch the phase-out threshold. If our total qualifying property purchases exceed $4 million, our available Section 179 deduction starts decreasing dollar-for-dollar.

The SUV limitation remains a key restriction. Even with enhanced limits, SUVs between 6,000 and 14,000 pounds still face that $31,300 cap under Section 179.

Business income limitations can't be ignored. We can't deduct more than our business's taxable income for the year using Section 179.

Financing doesn't change the rules. Whether we pay cash or finance, the same limits and requirements apply to our deduction calculations.

Could you give examples of popular vehicles that exceed the 6,000-pound requirement for Section 179, and offer insights on their practicality for businesses?

The Ford F-150 crew cab with the right options easily exceeds 6,000 pounds. We've found these trucks perfect for construction businesses needing both crew transport and hauling capability.

Chevrolet Suburban and Ford Expedition Max are SUV examples that hit the weight requirement. They work well for businesses needing passenger capacity, though they face the SUV limitation.

Heavy-duty pickups like the Ram 2500 and Ford F-250 typically qualify for full Section 179 treatment. These make sense for businesses regularly towing trailers or hauling heavy equipment.

Large cargo vans like the Ford Transit 350 or Ram ProMaster 3500 often exceed the weight threshold. They're practical for delivery businesses and contractors who need secure storage space.

The key is matching vehicle capability to actual business needs. We shouldn't buy a heavy-duty truck just for tax benefits if a lighter vehicle would better serve our operations.

*Disclosure: Not financial or tax advice. For informational purposes. Consult your financial advisor or tax professional before making any decisions based on your unique financial position.