Bonus depreciation class rule is something most business owners don’t hear about until it’s too late. Imagine this: you finally buy the big SUV for your company — $85,000. Perfect for client visits and hauling supplies. And yes, because it weighs over 6,000 lbs and is used 100% for business, you can write it off this year.
Feels great, right?
If you use bonus depreciation on that SUV, you also have to use it on every other asset in that class you bought this year.
Under current law, IRS FAQ on bonus depreciation explains that the election applies by asset class for the year — you can’t pick and choose within the same class.
So suddenly, you’re not just writing off the SUV. You’re also wiping out:
In Year 1, you’ve got over $400,000 in deductions. Huge tax savings now.
But here’s the question: will you be glad you took it all at once… or will you wish you had deductions left for the years when profits (and taxes) get even bigger?
That’s the planning piece most owners miss. Tax planning is strategic thinking now that saves you big money later.
Section 179 lets you choose to expense business assets immediately, but it has annual limits and applies asset by asset. Bonus depreciation applies by default, has no dollar cap, and the election is made by asset class for the year.
No. The IRS requires you to elect out of bonus depreciation by class of property for the year. If you apply bonus to one item in a class, it applies to all assets in that class placed in service that year.
Heavy SUVs (6,000–14,000 lbs GVWR) are capped under Section 179 at about $31,300 for 2025. Any remaining cost may still qualify for bonus depreciation if the vehicle is used 100% for business.