Page 1: Use 100% Bonus Depreciation to Save Big in 2025
If you’re a landlord or small business owner, you can use 100% bonus depreciation to immediately write off rental renovations, vehicles, or equipment in 2025. This tax-saving rule helps you deduct big expenses right away, instead of over several years.
That means when you upgrade a rental unit, buy a work truck, or invest in business equipment, you don’t have to wait to see tax savings — you get them now.
Bonus depreciation is a way to reduce your taxable income by writing off the full cost of qualifying property in the same year you place it into service. You can benefit if you:
- Own rental property
- Operate a small business
- Buy large equipment or vehicles
- Renovate real estate
This guide will show how to use 100% bonus depreciation to immediately write off rental renovations, vehicles, or equipment and keep more of your money.
Page 2: How to Use Bonus Depreciation on Renovations, Vehicles, and Equipment
Let’s explore how to actually use 100% bonus depreciation in real-world situations. This helps you understand how it works and whether you qualify.
Rental Renovations Qualify for 100% Bonus Depreciation
Say you own a duplex. In 2025, you spend $30,000 on new kitchens and bathrooms. That’s a big investment — but with this rule, you can immediately write off rental renovations instead of depreciating them over many years.
Your full $30,000 can be deducted this year. That could save you thousands in taxes.
Vehicles for Business or Rentals
If you buy a work truck, SUV (over 6,000 lbs), or delivery van and use it more than 50% for your business or rental work, you can use 100% bonus depreciation to immediately write off vehicles in the same year. For example:
- A $60,000 landscaping truck = $60,000 deduction
- A $45,000 SUV for managing rentals = $45,000 deduction
This applies as long as it’s placed in service during the year.
Equipment and Tools Also Qualify
If you run a cleaning service, plumbing business, or construction company, tools and machines count too. In 2025, you could use 100% bonus depreciation to immediately write off equipment like:
- Pressure washers
- Toolboxes
- Power saws
- Computers or tablets
Page 3: Rules for Using 100% Bonus Depreciation in 2025
Before you rush to deduct everything, make sure you meet the following IRS rules. Here’s what qualifies and how to stay compliant:
1. Must Be Qualified Property
To use 100% bonus depreciation to immediately write off rental renovations, vehicles, or equipment, the property must have a useful life of 20 years or less and be used in your trade, business, or income-producing rental activity.
Common qualifying items include:
- Appliances and cabinets in rentals
- Heavy-duty trucks
- Business furniture
- Machinery and tools
2. Must Be Placed in Service
You only get the deduction if the item is placed in service during the tax year. So, if you buy a new stove in December 2025 but don’t install it until January 2026, it counts for 2026.
3. Must Be Used Mostly for Business
If a vehicle or computer is used for both personal and business purposes, make sure it’s used over 50% for business to qualify.
4. New or Used Items Qualify
You can take bonus depreciation on both new and used items — as long as it’s the first time you’ve used them in your business. This makes buying quality used equipment a smart tax-saving move.
Final Thoughts: Take Advantage of Bonus Depreciation in 2025
To reduce your tax bill, you can absolutely use 100% bonus depreciation to immediately write off rental renovations, vehicles, or equipment in 2025. This rule can save you a lot of money if you plan purchases smartly.
Talk to your tax advisor about how and when to make purchases, and make sure you track all receipts and usage. This way, you’ll stay compliant and maximize your savings.
If you’re ready to save money on taxes, use this strategy before it begins to phase out after 2025.
