Eiduk Tax & Wealth Equipment & Vehicle Purchase Workpaper - 2025

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

Purpose: This workpaper tracks equipment and vehicle purchases eligible for accelerated depreciation under the One Big Beautiful Bill Act (OBBB). 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 §168(k), §179		 ☐ Business needs assessment
☐ Equipment/vehicle quotes obtained
☐ Purchase timing optimized (after 1/19/25)
☐ Financing arrangements finalized
Heavy Vehicle GVWR Verification
IRC §168(k), §280F		 ☐ GVWR ≥ 6,000 lbs confirmed
☐ Manufacturer specs obtained
☐ Door sticker documentation
☐ Not passenger vehicle (seats ≤9)
Bonus Depreciation Election
IRC §168(k)		 ☐ Property acquired after 1/19/25 verified
☐ 100% bonus depreciation calculated
☐ Form 4562 prepared
☐ Used property requirements confirmed
Section 179 Expensing
IRC §179		 ☐ $2.5M limit verified
☐ Business income limitation checked
☐ Qualifying property confirmed
☐ Election documented on return
Business Use Substantiation
IRC §274(d), §280F(d)(4)		 ☐ Mileage log system established
☐ Business use % calculation documented
☐ >50% business use maintained
☐ Contemporaneous records started
Asset Documentation & Records
IRC §6001		 ☐ Purchase invoices maintained
☐ Placed-in-service dates documented
☐ Business use percentage substantiated
☐ 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 OBBB Rules - Bonus Depreciation & Section 179

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

100% Bonus Depreciation (IRC §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 ≤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 §179):

  • Annual Limit: $2.5 million (increased from $1M)
  • Phase-Out Threshold: $4 million (increased from $2.5M)
  • 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 × 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

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

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

Vehicle Category Popular Models (≥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

This workpaper documents equipment and vehicle purchase strategies for Eiduk Tax & Wealth clients. The One Big Beautiful Bill Act (OBBB) signed July 4, 2025 permanently restored 100% bonus depreciation for property acquired and placed in service after January 19, 2025, and increased Section 179 limits to $2.5M with $4M 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.