To help you continue to drive sales and growth in 2025, we wanted to let you know about the recent update announced for Publication 946, How to Depreciate Property (including IRS Section 179 and Bonus Tax Deductions) for 2025. These changes could enhance the tax advantages for your customers.*
To view additional details on IRS Section 179, view the flyer here :
Key Details to Share with Your Customers
Increased Deduction Limits
- If a customer has a capital lease, they may be eligible to claim depreciation over the useful life of the asset. Additionally, customers may be able to write off the entire cost in the same tax year the equipment is acquired.
- Deduction cap increased from $1.25 M to $2.5 M, effective from property placed in service after-tax year December 31, 2024.
- The phase-out threshold also increased to $4 M.
- Eligible customers can fully deduct up to $2.5 M in qualifying business assets. The deduction phases out completely if total purchases exceed $6.5 M.
Bonus Depreciation Changes
- Effective for qualifying assets placed in service after January 19, 2025, bonus depreciation is restored to 100%.
- Bonus depreciation applies after Section 179 deductions.
In Addition, be aware of these vehicle deduction updates:
- Heavy SUV/vehicle cap remains at around $31,300 (subject to inflation adjustments).
- Heavier commercial vehicles may qualify for full expense under the new $2.5 M cap >50% business use.
Always Consult with a Tax Advisor
- This update on the recent tax depreciation changes is for informational purposes only. Never offer accounting or tax advice to your customers. Always encourage your customers to speak with their tax or accounting advisor for more information on eligibility and the benefits to their business of Section 179 deductions and Bonus Depreciation.
- Additional information at IRS.gov: Publications 946, How to Depreciate Property, Internal Revenue Service (irs.gov)
Please reach out to your Regional Sales Manager if you have any questions.
* Disclaimer: This is for informational purposes only and is not tax advice. TICF urges all business owners to consult with their local tax or accounting advisor for more information on eligibility and the effect of Section 179 and Bonus Depreciation on their business.