Business Owners Benefit from TCJA 100% Bonus Depreciation on Qualifying New and Used Vehicles

The Tax Cuts and Jobs Act (TCJA) has plenty of good news for small businesses, including very favorable first-year depreciation breaks for new and used vehicles used in the business.

First, the TCJA dramatically increases first-year depreciation deductions for vehicles used more than 50% for business.

The TCJA allows 100% first-year bonus depreciation for qualifying new and used heavy vehicles that are acquired and placed in service after September 28, 2017. Under the old tax law, the first-year bonus depreciation rate for 2017 was only 50%, and bonus depreciation was not permitted for used vehicles.

The 100% first-year bonus depreciation is only available if an SUV, pickup, or van has a manufacturer’s gross vehicle weight rating (GVWR) above 6,000 pounds.

And, you must use a heavy vehicle over 50% for business for the 100% first-year bonus depreciation to be available. Otherwise, you must depreciate the business-use percentage of the vehicle’s cost over a six-year period.

The Tax Cuts and Jobs Act of 2017 represents the most significant changes in tax law in over 30 years! Don’t pay more in taxes than you’re required.  Give us a call today at 636-394-5524 and let us help guide you through the complexities of these new rules.  Create a tax strategy plan today and take advantage of all benefits the TCJA has created for business owners like you.


Capital Advisory Group, Inc. | 119 Old State Road, Ellisville, MO 63021 |