Eiduk Tax & Wealth

Equipment & Vehicle Purchase Workpaper

Bonus Depreciation, Section 179 & Heavy Vehicle Strategy - OBBBA 100% Expensing

šŸ—ļø P2 Core Deductions
Strategies #8, #10, #11 Ā· IRC Ā§168(k), Ā§179
Purpose: This workpaper tracks equipment and vehicle purchases eligible for accelerated depreciation under the One Big Beautiful Bill Act (OBBBA). With 100% bonus depreciation permanently restored (signed July 4, 2025), businesses can immediately expense qualifying assets acquired and placed in service after January 19, 2025. Heavy vehicles (6,000+ lbs GVWR) avoid luxury auto limits and qualify for full expensing.

Client & Business Information

Equipment & Asset Purchase Tracker

Asset Description Purchase Date Purchase Price Recovery Period Depreciation Method Year 1 Deduction Verified Notes
EQUIPMENT TOTALS $0 - $0 -

Heavy Vehicle Tracker (6,000+ lbs GVWR)

Year/Make/Model GVWR (lbs) Purchase Date Purchase Price Business Use % Deductible Amount Method Used Verified Notes
VEHICLE TOTALS $0 - $0 -
GRAND TOTAL (Equipment + Vehicles) $0 - $0 -

Strategy Implementation & Documentation Tracker

Implementation Step & IRC Reference Completion Date Documentation Checklist Verified Notes / Status
Asset/Vehicle Purchase Planning
IRC Ā§168(k), Ā§179		 ā˜ Business needs assessment
ā˜ Equipment/vehicle quotes obtained
ā˜ Purchase timing optimized (after 1/19/25)
ā˜ Financing arrangements finalized
Heavy Vehicle GVWR Verification
IRC Ā§168(k), Ā§280F		 ā˜ GVWR ā‰„ 6,000 lbs confirmed
ā˜ Manufacturer specs obtained
ā˜ Door sticker documentation
ā˜ Not passenger vehicle (seats ā‰¤9)
Bonus Depreciation Election
IRC Ā§168(k)		 ā˜ Property acquired after 1/19/25 verified
ā˜ 100% bonus depreciation calculated
ā˜ Form 4562 prepared
ā˜ Used property requirements confirmed
Section 179 Expensing
IRC Ā§179		 ā˜ $2.5M limit verified
ā˜ Business income limitation checked
ā˜ Qualifying property confirmed
ā˜ Election documented on return
Business Use Substantiation
IRC Ā§274(d), Ā§280F(d)(4)		 ā˜ Mileage log system established
ā˜ Business use % calculation documented
ā˜ >50% business use maintained
ā˜ Contemporaneous records started
Asset Documentation & Records
IRC Ā§6001		 ā˜ Purchase invoices maintained
ā˜ Placed-in-service dates documented
ā˜ Business use percentage substantiated
ā˜ Depreciation schedules updated

Tax Savings Summary

Description Amount Tax Rate Tax Savings
Total Year 1 Deductions $0 $0
vs. Traditional Depreciation (Year 1 Only) 37% $0
ACCELERATED TAX SAVINGS (Year 1) 100% Bonus vs. Traditional $0

2025 OBBBA Rules - Bonus Depreciation & Section 179

One Big Beautiful Bill Act (OBBBA) - Signed July 4, 2025

100% Bonus Depreciation (IRC Ā§168(k)):

  • Permanently Restored: 100% for property acquired & placed in service after 1/19/25
  • Eligible Property: New or used tangible property with recovery period ā‰¤20 years
  • Includes: Machinery, equipment, vehicles, computers, furniture, QIP
  • No limit: Deduct 100% of cost regardless of amount
  • No income limitation: Can create or increase NOL

Section 179 Expensing (IRC Ā§179):

  • Annual Limit: $2,500,000 (increased from $1,220,000)
  • Phase-Out Threshold: $4,000,000 (increased from $3,050,000)
  • Income Limitation: Limited to taxable income from active business
  • State Advantage: Many states allow 179 but not bonus depreciation
  • Effective: Property placed in service after 12/31/24

Heavy Vehicle Strategy (6,000+ lbs GVWR):

Why 6,000+ lbs Matters:

  • Under 6,000 lbs: Luxury auto limit = $20,200 max Year 1 deduction
  • 6,000+ lbs: NO LIMITS - 100% bonus on full purchase price Ɨ business use %
  • Section 179 cap: Heavy vehicles limited to $30,500 under 179 (use bonus instead)
  • Examples: Escalade, Navigator, F-150 crew cab, Mercedes Sprinter, GLS, X7

āš” Strategy: For $80k SUV @ 100% business = $80k Year 1 deduction vs. $20,200 for luxury car!

Bonus vs. Section 179 - When to Use Each:

Use 100% Bonus When:

  • Asset cost exceeds Section 179 limits
  • Want to create/increase NOL (no income limitation)
  • Heavy vehicles over 6,000 lbs (full cost vs. $30,500 cap)
  • Real estate improvements (QIP)

Use Section 179 When:

  • State doesn't conform to bonus depreciation
  • Want flexibility (elect asset-by-asset)
  • Used property from related parties

Qualifying Property Quick Reference

Asset Type Recovery Period Bonus Eligible? Section 179 Eligible? Special Notes
Computers, peripherals, software 3 or 5 years āœ“ Yes āœ“ Yes Off-the-shelf software qualifies
Vehicles (under 6,000 lbs) 5 years āœ“ Yes āœ“ Yes (limited) Luxury auto limit: $20,200 Year 1
Vehicles (6,000+ lbs GVWR) 5 years āœ“ Yes (100%) āœ“ Yes ($30,500 max) NO luxury limits - use Bonus!
Machinery & equipment 5 or 7 years āœ“ Yes āœ“ Yes Most business equipment
Furniture & fixtures 7 years āœ“ Yes āœ“ Yes Office furniture, displays
Land improvements 15 years āœ“ Yes āœ— No Parking lots, fencing, landscaping
Qualified Improvement Property (QIP) 15 years āœ“ Yes āœ“ Yes Interior improvements to nonresidential
Buildings & structural components 27.5 or 39 years āœ— No āœ— No Use cost segregation to reclassify

Popular Heavy Vehicles (6,000+ lbs GVWR) - 2025 Examples

Vehicle Category Popular Models (ā‰„6,000 lbs GVWR) Typical GVWR Range
Full-Size SUVs Cadillac Escalade, Lincoln Navigator, GMC Yukon XL, Chevy Tahoe/Suburban, Ford Expedition Max 6,800-7,500 lbs
Large Pickup Trucks Ford F-150 (crew cab), Ram 1500 (quad/crew), Chevy Silverado 1500 (crew), F-250/350, Ram 2500/3500 6,100-14,000 lbs
Luxury SUVs Mercedes GLS, BMW X7, Range Rover, Audi Q7, Lexus LX 6,000-6,800 lbs
Commercial Vans Ford Transit, Mercedes Sprinter, Ram ProMaster, Chevy Express 8,500-10,000 lbs
Electric/Hybrid Heavy Rivian R1S, GMC Hummer EV, Ford F-150 Lightning (extended), Tesla Model X (some configs) 6,000-9,000 lbs

Advisor Notes & Observations

Ā© 2026 Eiduk Tax & Wealth. All rights reserved. This workpaper documents equipment and vehicle purchase strategies for Eiduk Tax & Wealth clients. The One Big Beautiful Bill Act (OBBBA) permanently restored 100% bonus depreciation for property acquired and placed in service after January 19, 2025, and increased Section 179 limits to $2,500,000 with $4,000,000 phase-out. Heavy vehicles (6,000+ lbs GVWR) avoid luxury auto depreciation limits. All purchase documentation and mileage logs must be maintained for IRS audit defense. This document does not constitute tax advice. Consult your tax professional.