Yes, under the recent One, Big, Beautiful Bill Act (OBBBA) signed in 2025, 100% bonus depreciation is now permanent for qualifying property acquired and placed in service after January 19, 2025, reversing the planned phase-out from the 2017 Tax Cuts and Jobs Act (TCJA) and providing long-term certainty for businesses making capital investments. While "permanent" in tax law means it's in place until Congress changes it, it provides significant stability for immediate expensing of assets.
OBBB Changes to Bonus Depreciation
The bonus depreciation rate for 2025 pre-OBBB was just 40%. The OBBB, however, permanently reinstated 100% bonus depreciation for qualified property acquired and placed in service after January 19, 2025. It also provided transition provisions.
1 and Jan. 19, 2025, the bonus depreciation rate is 40%. Due to a tax provision in the One Big Beautiful Bill, assets placed in service Jan. 20, 2025, and after are eligible for 100% bonus depreciation (full expensing). That means you can write off the entire purchase amount the same year you place it in service.
Notice 2026-11 allows a taxpayer to elect under IRC Section 168(k)(5) to claim 100% bonus depreciation for specified plants that are planted, or grafted to a plant that was previously planted, after January 19, 2025, by following the provisions of Treas.
Instead of spreading deductions out over several years, you can take a 100% deduction in year one. The OBBB Act reinstated 100% bonus depreciation starting in 2025, reversing the scheduled phase-down. Not all vehicles are treated the same under the tax code.
If the vehicle weighs more than 6,000 pounds and is used more than 50% for business, you can write off up to $28,900 in the first year, and potentially even more with bonus depreciation. Let's break it down: Buy a qualifying vehicle for $60,000, and you could write off a large portion of that cost in year one.
Yes, in 2024, each parent could gift $18,000 to a child (totaling $36,000 per child for the couple) without tax implications, and for 2025, that amount increased to $19,000 per parent ($38,000 per child) because the annual gift tax exclusion is adjusted for inflation, requiring separate checks for each parent to utilize the full amount, according to TurboTax, Yahoo Finance, Guardian Life, IRS (.gov), and Mercer Advisors.
100% bonus depreciation, when placed in service between 9/28/2017 and 12/31/2022. 80%, when placed in service between 1/1/2023 and 12/31/2023. 60%, when placed in service between 1/1/2024 and 12/31/2024. 40%, when placed in service between 1/1/2025 and 12/31/2025.
Bonus depreciation has no annual limit on the deduction. Section 179 deductions are also limited to annual taxable business income, meaning that a business cannot deduct more money than it made. Bonus depreciation does not have this limit and can be used to create a net loss.
On July 4, 2025, President Trump signed the 2025 tax reform into law as P.L. 119-21, Republicans' “One Big Beautiful Bill.” Among its most impactful provisions is the permanent restoration of 100% bonus depreciation, offering long-term clarity for tax planning and capital investment strategies.
The main downsides of bonus depreciation include losing future deductions by taking them upfront, potentially increasing future taxable income, facing higher "recapture" taxes if the asset is sold, and dealing with complex rules or state-level nonconformity, making it less beneficial for short-term investors or those in lower tax brackets who might need deductions later. It also creates large upfront tax benefits that might not align with book income, affecting financing, and rules change frequently, requiring constant tax planning.
100% bonus depreciation is a recently reinstated provision of the tax code that allows property owners and real estate investors to claim a tax deduction equal to 100% of the cost of a qualified business property. This can be a useful tool for lowering your business tax obligations in certain situations.
At the end of 2025, the individual tax provisions in the Tax Cuts and Jobs Act (TCJA) expire all at once. Without congressional action, most taxpayers will see a notable tax increase relative to current policy in 2026.
For heavy SUVs, pick-ups and vans they must be over 6000 lbs. in gross vehicle weight (GVW) to qualify. To determine weight, the IRS looks at the Gross Vehicle Weight Rating, typically on the driver's door jamb. There is a deduction Cap for Heavy SUVs: $31,300 for 2025 if over 6,000 lbs.
On July 4th, President Trump signed the “One Big Beautiful Bill Act” (OBBBA) into law, emphasizing a more pro-business tax environment, which is highlighted by restoring 100% bonus depreciation permanently for qualifying property placed into service after January 19, 2025.
Both new and used property can qualify if the asset is new to you and used in your business during that tax year. Let's say your business buys $1 million worth of equipment. With 100 percent bonus depreciation, you can deduct the full amount in year one.
WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued Notice 2026-11 PDF that provides taxpayers with guidance on the permanent 100% additional first year depreciation deduction for eligible depreciable property acquired after Jan. 19, 2025, provided by the One, Big, Beautiful Bill.
At a glance:
Any gifts exceeding $19,000 in a year must be reported and contribute to your lifetime exclusion amount. You can gift up to $13.99 million over your lifetime without paying a gift tax on it (as of 2025).
Step-Up in Basis for Inherited Assets
One tax advantage of leaving assets after death is the step-up in basis. This provision allows heirs to inherit assets at their fair market value at the time of death, effectively resetting the capital gains tax to zero for any appreciation during the decedent's lifetime.
The IRS $600 rule refers to a change in reporting requirements for third-party payment apps (like Venmo, PayPal) for taxable income from goods and services, where platforms must send a Form 1099-K if you receive over $600 in a year, intended to capture gig economy/side hustle income, though delays and phased implementation have adjusted the timeline, with current rules for 2024 using a higher threshold ($5,000) before fully phasing to $600 for future years, but remember all taxable income, regardless of form, must always be reported.
Yes, an LLC can write off a car purchase as a business expense, either by deducting the full cost in the first year using Section 179 and bonus depreciation (especially for heavy SUVs/trucks over 6,000 lbs), or by deducting actual expenses (gas, insurance, repairs) or the standard mileage rate over time, provided the car is used more than 50% for business. The method depends on the vehicle type, usage, and tax strategy, requiring careful record-keeping of business vs. personal use.
Written prior to the explosion of the Sport Utility Vehicle (SUV) market, this tax break defines qualifying vehicles by their weight instead of function.