If you’re considering purchasing a business vehicle, heavy vehicle tax deductions can help you maximize savings. When combined with a qualifying home office, you may be eligible for significant tax benefits. Here’s how:
Heavy Vehicle Deductions
In 2025, businesses can take advantage of:
- Section 179 expensing – Deduct up to $1,250,000 of qualifying business equipment, including heavy vehicles. SUVs are subject to a $31,300 limit, while pickups and vans meeting specific criteria are not.
- Bonus depreciation – Claim 40 percent first-year depreciation on a qualifying heavy vehicle.
- Business-use requirement – You must use the vehicle more than 50 percent for business to qualify for these deductions.
A “heavy” vehicle has a gross vehicle weight rating (GVWR) of over 6,000 pounds. Certain SUVs, pickups, and vans qualify, but lighter vehicles are subject to much lower annual depreciation limits.
Home-Office Deductions
A deductible home office that meets the principal place of business test converts commuting miles into business miles, making it easier to meet the more-than-50-percent-business-use test. Combine this with heavy vehicle tax deductions to maximize your tax savings.
For your home office to qualify as your tax code–defined principal office, you must use it regularly and exclusively for your business, and the home office must serve as
• your primary income-generating space, or
• the location where you perform substantially all your administrative tasks.
Example of Tax Savings
A $90,000 SUV used 100 percent for business could generate $61,824 in first-year deductions, while with a qualifying pickup truck, you could deduct the entire $90,000 in Year One under Section 179.
For Corporate Owners
If you own the heavy vehicle personally but operate as a corporation, ensure your corporation reimburses you for business use to capture the full tax benefit.
Sterling Tax and Accounting is here to help your business with tax planning! Our comprehensive approach to tax planning helps reduce your overall tax liability and keep more money in your pocket. If all your accountant does is file your taxes, chances are they are making you pay more than your fair share of taxes.
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